What is the No Claims Bonus?

The No Claims Bonus, also known as NCB, is a reward system for policyholders who haven't made any claims on their insurance policy in a specific period. It is a discount provided by insurance companies to incentivize safe driving and reward customers for their claim-free history. Each year without a claim usually increases the bonus percentage, resulting in lower insurance premiums. This bonus can be transferred from one insurer to another, allowing policyholders to benefit from their safe driving record even if they switch providers. However, in the event of a claim, the NCB is generally affected, and the percentage may decrease. It is essential to understand the specific terms and conditions regarding NCB for each insurance policy as they may vary among providers.