Here's our advice on buying your car insurance policy and how your no claims bonus works.
What is a no claims bonus?
A no claims discount or no claims bonus (NCB) is a discount that can be applied to an insurance policy based on the number of consecutive years the policyholder has gone without making any claims.
If there are still no claims on your policy, you keep getting a discount. This varies from insurer to insurer, but with Admiral you can build up this bonus for a maximum of 15 years.
Can I bring my bonus with me from another insurer?
Yes, you'll just need to send us the renewal notice your previous insurer sent you and your NCB proof, which they will also provide.
How much discount do I get each year?
| Years of NCB | Average discount in 2023 |
|---|---|
| One | 15% |
| Two | 16% |
| Three | 17% |
| Four | 18% |
| Five | 18% |
| Six | 18% |
| Seven | 18% |
| Eight | 18% |
| Nine plus | 27% |
How long do no claims bonuses last?
A no claims bonus or no claims discount is usually valid for two years after a policy ends, but it varies between insurers. For example, we accept up to three years.
This means that if you don't have a car, you'll still retain your no claims bonus.
When you start driving again speak with your insurer, as they might accept some of the bonus with proof of your last policy.
What happens if I make a claim?
It depends what the claim is for; payments for windscreen damage won't affect it.
Likewise, if the accident was the other person's fault and we recover all the money from their insurers, you won't lose your bonus.
Even if you do have to claim for an accident that was your fault, you could still keep some of your NCB.
If you make one claim during your insurance period, you'll lose two years of the bonus.
So, if you have five or more years NCB, it will reduce to three years at renewal.
You'd still get a discount off your premium, and it wouldn't take so long to build it back up.
If you make two claims during the period you're insured for, you'd lose four years' bonus, and if you made three or more claims during the period you're insured for, you'd lose them all.
What if the accident wasn't my fault?
If the other driver was at fault, the third-party insurer pays out, we recover our costs and it won't impact your bonus. However, this doesn't mean your policy won't be affected.
Insurance is all about risk – and as part of this an insurer will look at the number of accidents you have, both fault and non-fault.
We offer an Uninsured Driver Promise (on fully comprehensive cover), which means your No Claims Bonus won’t be affected if you have an accident with an uninsured driver that isn’t your fault.
This is as long as you have the make, model and registration number of the other vehicle.
What is protected no claims bonus for car insurance?
If you’re eligible, you can pay an additional amount to guarantee or protect your NCB.
'Guaranteed' means a claim won't reduce your bonus but you won't get extra discount during that insurance period.
'Protected' allows two claims in three years before the bonus is reduced, and, again, you won't get any extra discount in that period.
Where your bonus remains unaffected, in most instances a claim will lead to some increase in premium at renewal.
However, our motor premium calculation will include the discount to which you are entitled.
What about MultiCar and MultiCover?
Each policyholder on the MultiCar policy builds up their own no claims bonus.
If one policyholder makes a claim and loses some or all of their no claims bonus, it doesn't affect the other policyholders.
However, if you’re the policyholder and a named driver on your policy has an accident, it will affect your NCB.
MultiCover includes home insurance with your existing MultiCar Insurance.
It's a great way to reduce the time you spend on the phone to an insurance agent as well as the number of policies you need to keep track of.
If you make a claim on your home insurance while on a MultiCover policy, it won't affect your motor no claims bonus.
