What is a no claims bonus?

A no claims bonus, sometimes called a no claims discount, is a reduction in your car insurance premium cost based on the number of consecutive years that you have been previously insured without you claiming or someone making a claim against you.

A no claims bonus only applies to the policy holder and not the named drivers on the policy. It kicks in after a minimum of one year. The discount scale varies between insurers, but if you’ve had no claims in the last five or more years, you can look forward to a significant discount on your car insurance.

No claims bonus protection

When you make a claim, even for something that is not your fault, your premium may be affected the following year. This will be due to a loss or reduction of your no claims bonus.

You can choose extra cover to protect some, or all, of your no claims bonus if you make a claim. If you opt for ‘step-back’ bonus protection, you can keep part of your no claims discount in the case of a single claim.

For more information about no claims bonus protection or step-back bonus protection, just Ask Acorn.