If you are selling your car, taking a break from driving, or just do not need a vehicle right now, you might be worried about losing your no claims bonus. Your NCB can save you up to 60% on your car insurance premium, so it is worth protecting. The good news is you can keep it for up to two years without an active policy, but you need to take some simple steps before you cancel.
A no claims bonus (also called a no claims discount or NCD) is a discount on your car insurance premium that you earn for each year you drive without making a fault claim. The longer you go without claiming, the bigger the discount becomes.
| Claim-free years | Typical discount (ABI) |
|---|---|
| 1 year | Around 30% |
| 2 years | Around 40% |
| 3 years | Around 45% |
| 4 years | Around 50% |
| 5+ years | Up to 60% |
Most insurers cap the maximum no claims discount at somewhere between 5 and 9 years. After you reach their cap, you keep that level of discount for as long as you stay claim-free. Your NCB belongs to you, not your insurer, and you can transfer it when you switch providers. For more on how the discount works and whether to protect it, see our guide on no claims bonus protection.
Most UK insurers will accept a no claims bonus that is up to two years old. Some may stretch this to three years, but this is less common. If you go longer than two years without a car insurance policy, you will likely need to start building your no claims bonus again from scratch.
If you are planning a break from driving, make a note of when your policy ends. Most insurers will only honour your no claims discount for up to two years after that date. After this, you could lose a discount worth hundreds of pounds a year.
If you think you will be without a car for more than two years, you might want to look at short-term or temporary insurance options. These can help keep your bonus active even if you only drive occasionally. The key thing is to make sure you do not let your no claims bonus lapse without realising it.
Yes, your no claims bonus can expire. If you do not have an active car insurance policy for more than two years, most insurers will no longer accept your NCB and you will need to start building it again from zero. Your bonus does not disappear overnight, but the two-year window is a hard deadline for most providers.
It is worth noting that your NCB does not grow while you are without insurance. If you had four years of no claims when your policy ended, you will still have four years when you come back - as long as you return within the two-year window. You do not earn additional years during the gap.
If you are not sure how many years of no claims bonus you have, the quickest option is to look at your current car insurance policy documents or your most recent renewal letter. Both should show the number of no claims years on your record. If you cannot find these, you can call your insurer and ask them directly.
UK insurers can also verify your no claims discount through the Motor Insurers' Bureau (MIB) No Claims Discount Database. This is a central system that allows insurers to check your NCD record without needing paperwork from you. However, not all insurers submit data to this database, so it is still a good idea to keep your own proof.
Save a copy of your renewal letter or cancellation letter every year. If you switch insurers or take a break from driving, this proof of your no claims bonus could save you hundreds. Your new insurer will usually give you 7 to 28 days to provide proof when you start a new policy.
If you have lost all your documents and your old insurer no longer exists, you can also check your bank statements for previous insurance payments. This can help you identify which company insured you so you can request proof of your no claims discount.
Before you cancel your policy, ask your insurer for proof of your no claims bonus. This is usually a letter or email showing how many years you have built up. Keep this safe - you will need it when you take out a new policy.
You should also consider whether no claims bonus protection is worth the cost while you still have an active policy. This is an add-on that lets you make a limited number of claims without losing your discount.
Being a named driver on someone else's insurance will not usually help you build or keep a no claims bonus. The NCD belongs to the main policyholder, not the named driver. This means if you are a young driver building experience on a parent's policy, those years will not count towards your own no claims discount when you eventually take out your own insurance.
A small but growing number of insurers now offer a "named driver no claims bonus" that lets you build proof of claim-free driving as a named driver. This is not standard across the industry, so you need to specifically ask your insurer whether they offer it. If they do, the named driver NCD can be used when you take out your own policy with that same insurer, though it may not be accepted by other providers.
If you are a named driver looking to get your own policy for the first time, comparing car insurance via Brumble is the best way to find a competitive price without an established no claims history. You might also want to consider black box insurance, which can help reduce costs for new policyholders by rewarding safe driving from day one.
Most UK insurers accept a no claims bonus that is up to two years old. Some insurers may stretch this to three years, but this is less common. If you go longer than two years without car insurance, you will likely need to start building your no claims bonus again from scratch.
Yes. If you do not have an active car insurance policy for more than two years, most insurers will no longer accept your NCB and you will need to start building it from zero. Your bonus does not grow during a gap in insurance either - you return with the same number of years you had when your policy ended.
Before you cancel your policy, ask your insurer for proof of your no claims bonus. This is usually a letter or email showing how many years you have built up. Keep this document safe as you will need it when you take out a new policy. Your renewal notice or cancellation letter will often include this information.
Yes. Your no claims bonus belongs to you, not your insurer. When you switch providers, you can take your NCD with you. You will need to provide proof, which is usually found on your renewal letter or cancellation documents. Your new insurer will typically give you 7 to 28 days to supply this.
Not usually. The no claims bonus belongs to the main policyholder, not the named driver. However, a small number of insurers now offer a "named driver no claims bonus" that lets you build proof of claim-free driving you can use when taking out your own policy. Ask your insurer if this is available.
Most insurers cap the maximum discount at five years of claim-free driving, which typically gives you up to 60% off your premium (ABI). Some insurers offer additional years up to 9, but the discount usually levels off after five years.
If the other driver's insurer accepts full liability and pays all costs, your NCD should not be affected. However, if your insurer cannot recover costs from the other party, it could still count as a fault claim and reduce your bonus.
If you declare your car off the road (SORN) and cancel your insurance, your no claims bonus will remain valid for up to two years. You will not earn any additional NCD during this time, but you can use your existing bonus when you take out a new policy.
Association of British Insurers - No claims bonuses and discounts
Motor Insurers' Bureau - No Claims Discount Database
Financial Conduct Authority - Insurance conduct and consumer guidance
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