No Claims Bonus Explained: How NCB Works in the UK

What is a no claims bonus?

A no claims bonus, also called a no claims discount (NCD), is a reduction on your car insurance price for every consecutive year you go without claiming. The two terms mean the same thing. It belongs to the policyholder, so you build it on a policy in your own name.

It is one of the biggest factors in what you pay, alongside age, postcode and the car itself. Our car insurance guide covers the other factors that drive the price.

How does a no claims bonus build up?

You usually need a full policy year without a claim to earn your first year. Ageas says 12 months of claim-free driving is the minimum. Each further claim-free year adds another.

How much each year is worth, and when it stops growing, varies a lot between insurers:

• Range of maximum discounts: Which? (January 2026) found top discounts from as low as 24% to as high as 80%.
• Time to reach the top: from around four years with some insurers to 20 years with others, according to the same Which? guide.
• Admiral: you can build up a bonus for a maximum of 15 years. Admiral says its average NCB discount in 2025 was 16% for 1–8 years and 18% for 9 years or more.
• Typical cap: Ageas says most insurers cap the discount after about nine years, though this varies.

Because the scales differ, the same number of years can be worth much more with one insurer than another. When you compare quotes, the headline price already includes each insurer’s own discount.

What happens to your no claims bonus after a claim?

Only some claims reduce your bonus. The Financial Ombudsman Service (FOS) explains that a fault claim is recorded when the accident was your fault, or when it wasn’t your fault but your insurer can’t recover the cost from someone else.

FOS says an unprotected fault claim typically reduces your bonus by two years, so four years becomes two. It also notes that even a non-fault claim can mean you don’t earn a new year for that policy period.

Example step-back scale (Admiral)

Admiral publishes how its bonus steps back after claims. These are one insurer’s rules, checked October 2026.

Source: Admiral – How the no claims bonus works (updated July 2026) and Admiral – Information about your No Claims Bonus.

Aviva takes a different line on unprotected bonuses: one at-fault claim puts your NCD back at renewal, and two or more at-fault claims step it back to nil.

Claims that may not affect your bonus

MoneyHelper (July 2024) lists non-fault accidents where costs are recovered, breakdown cover claims and, under some policies, windscreen claims as claims that often leave your bonus alone. Aviva says it won’t reduce NCD for non-fault damage such as potholes, severe weather, flooding or animals, or if you’re hit by an uninsured driver and it wasn’t your fault. Those are Aviva’s terms; other insurers may differ.

Protected no claims bonus: what it does and doesn’t do

NCB protection is an optional add-on that lets you make a set number of claims before your years drop. It usually costs extra. Common versions, according to Which?, allow two or three claims over three years, while some insurers allow one claim a year or offer unlimited protection.

Eligibility rules apply. Aviva, for example, requires you to be 21 or over with at least three years’ NCD and no more than one claim in the past year, and its protection covers one at-fault claim a year.

The key limitation is that protection keeps your years, not your price:

• FOS: a protected NCB “won’t change if a fault claim is recorded. However, this doesn’t mean the price is protected.”
• MoneyHelper (July 2024): protection “doesn’t guarantee your car insurance premium won’t increase after a claim.”
• Admiral: your overall price could still rise after an accident, even if you weren’t at fault.

Which? gives a worked example where a driver keeps their protected discount but the underlying base premium rises after a claim, so the final price still goes up. Whether protection is worth it depends on its cost, how many years you hold and how likely you think you are to claim.

Proof of no claims bonus

A new insurer will usually ask for proof of your bonus, and each sets its own rules on what it accepts. Requirements include:

• Aviva: on the previous insurer’s headed paper, in English, showing the number of years built up.
• Admiral: your renewal notice or NCB proof from your previous insurer.
• Co-op: in your name, used on only one policy, and not more than two years old.

MoneyHelper (July 2024) says you can usually get proof from your insurer’s online account, renewal or cancellation letters, or by asking your previous insurer.

Does a no claims bonus expire?

Yes, if you stop driving on your own policy for too long. Aviva accepts NCD up to two years after your last policy expired. Admiral says a bonus may remain valid for up to three years, depending on the insurer. MoneyHelper (July 2024) notes that most discounts stay valid for two years after a policy ends. If you’re taking a break from driving, keep your proof safe and check the new insurer’s cut-off before you buy.

Can you use your no claims bonus on two cars?

Not at the same time. Howden explains that one bonus can’t be used on two cars at once. Two options exist for a second car:

• Mirrored NCB: some insurers let a second car with the same insurer mirror your bonus. Howden warns that a claim on one car can then affect the discount on both.
• Multi-car policies: each car builds its own separate NCB. Aviva and Admiral both say each vehicle or policyholder on a multi-car policy earns its own bonus.

Named driver experience

Named drivers generally don’t build their own bonus. Aviva says named drivers don’t build NCD unless they’re the main driver. Some insurers recognise named-driver history with a separate discount instead.

Co-op, for example, offers a discount to drivers aged 20 or over who were named drivers on a Co-op policy that is still active or ended in the last 12 months. You must have no claims for accidents you caused and no motoring convictions in the last four years, though Co-op says parking fines and a single speeding ticket are not a problem. It counts up to three years of claim-free experience.

If you’re a young driver currently named on a parent’s policy, our young driver car insurance guide covers other ways to bring the price down.

No claims bonus from abroad or a company car

Driving history from abroad

Some UK insurers accept bonuses earned overseas. Aviva accepts NCD from EU and EEA countries plus more than 40 other countries it lists, with proof in English. Check each insurer’s own list, as policies vary.

Company car drivers

Ageas explains that you don’t earn a traditional bonus on a company car because your employer is the policyholder. Aviva says the same. Some insurers will still give an introductory discount if you can show a claim-free record. Ageas suggests a letter on company letterhead confirming:

• the registration of each car you drove
• the period you had sole use
• whether the car was available for personal use
• how many years you drove claim-free
• the dates of the company’s insurance

Ask your employer for this before you leave, while records are easy to find. Ageas notes a bonus can expire after about two years without a personal policy.

Disputes about your no claims bonus

If you think a claim has been wrongly recorded as fault, or your bonus has been reduced unfairly, complain to your insurer first. If you’re unhappy with the final response, you can take it to the Financial Ombudsman Service. FOS says it looks at the policy terms, the evidence, how the insurer reached its decision and whether the terms were clearly explained when you bought the policy.

For more ways to cut your premium beyond your bonus, see our cheap car insurance tips.

Frequently Asked Questions

Sources

• Which? – Car insurance no-claims bonuses explained (22 Jan 2026)
• Financial Ombudsman Service – Fault claims and no-claims bonuses
• MoneyHelper – Should I protect my no-claims bonus? (Jul 2024)
• Admiral – How the no claims bonus works (updated Jul 2026)
• Admiral – Information about your No Claims Bonus
• Aviva – No Claim Discount explained (updated Sep 2026)
• Aviva – Understanding No Claim Discount
• Co-op Insurance – Young driver discounts
• Ageas – Keeping your NCB when switching from a company car (Feb 2026)
• Howden – Can you use a no claims bonus on two cars? (Aug 2026)

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