Do I need a no claims bonus?

5 minutes

All drivers must have car insurance under UK law. It allows you to legally drive your vehicle on the road and helps protect against the costs of unexpected accidents, damage or theft.

While everyone should act cautiously around driving and protecting their car, accidents do happen. That’s where your insurance can help – and a no claim bonus can potentially keep the price of car insurance down. 

Many drivers go long periods of time without being involved in an accident or having to make an insurance claim. If you go at least one year without making a claim, you start to build up a no claim bonus, which can reduce the price of your premium. 

Read on to find out more about how you can get a no claim discount on your insurance and how it works.

What is a no claim bonus?

A no claim bonus (NCB) is a discount you receive when renewing your car insurance, assuming you’ve not made a claim within the past 12 months. The size of the bonus is based on how long you’ve gone without claiming on your policy. It’s sometimes referred to as a no claim discount (NCD). 

How does no claims work?

Having a no claim bonus means you may be able to receive a discount on your insurance premium. The discount varies depending on your specific policy and insurer, but generally the more years you have without claims, the better. 

Is there a maximum no claim discount an insurer can offer? 

Having a no claim bonus means you’ll receive a discounted rate on your car insurance premium’s standard price. However, it’s important to note that most insurers will cap their no claim discount after a certain number of years.

What is no claim discount protection?

Some insurance providers offer no claim discount protection, which allows you to retain your discount in the event of a claim up to a certain number of claims. Some insurers providers such as Flow, will offer you No Claim Guarantee which will protect you regardless of the number of claims that you make. 


Do I need no claims bonus protection?

You don’t necessarily need no claim bonus protection. However, as there’s no guarantee you won’t be in an accident, protecting your discount can give you added peace of mind. 

Here’s a breakdown of the benefits of having a no claims bonus: 

  • It can save you money at every annual renewal.
  • The number of years no claim bonus grows each year if you don't make a claim. Flow Annual allows policyholders to build up to 20 years no claim bonus, reaching as high as a 64% discount on your premium after nine years or more.
  • If you take a break from driving and paying your insurance, your no claim bonus will be put on hold. You can then reinstate it once you’re back on the road and ready to insure again – so long as this is within two years of pausing your policy. 
  • You don’t need to worry about what happens if you buy a new car. We’ll simply move your no claim discount over to your new vehicle, without changing your annually earned discount. 

A no claim bonus with Flow Annual offers flexibility and competitive discounts.

Is it worth protecting a no claim bonus? 

Paying for no claim discount protection means you can retain your discount, even if you make a claim. Many people choose to pay for this to remove the general uncertainty of being on the road, particularly if they’ve built up a large no claims discount over time. 

However, it’s worth considering how your discount impacts the cost of your insurance. For example, would it cost more to protect your bonus than would be discounted from the price of your policy? Or is it worth protecting your no claim bonus to ensure you can build up a larger discount over time?

It can be worth checking reputable comparison sites to analyse the different insurance costs for drivers with and without a no claim discount. You can then weigh this up against the cost of no claim discount protection to make an informed decision on what’s right for you.

Finding the best car insurance

Aside from the vehicle itself, car insurance is the most important thing a driver needs to get on the road. You need it to legally drive your car on a public road, and it protects you in case of an accident. 

With Flow, we offer different levels of car insurance cover. Policies can protect you against the costs of theft, accidental damage, vandalism, accidentally using the wrong fuel, and repairs if you’re involved in an accident caused by an uninsured driver. Look for car insurers that guarantee coverage for these at the bare minimum, as well as offering useful extras. 

If you want to build up your no claim discount over time, Flow Annual allows you to do so. It also gives you the reassurance of the same payments every month for your 12-month policy, or one annual payment if you prefer. Find out more about whether you need a no claim discount on your car insurance policy. 


If I make a claim, how is my NCB affected?

If you make a claim for an accident that was your fault, you may lose some or all of your no claim discount, unless you have protected it. 

How do I find out how many years no claim bonus I have?

You will have a no claim bonus if you have gone at least one year without making a claim on your insurance policy. Speak to your provider to find out more, or review your policy schedule to find out how long your no claims bonus is.

How can I get proof of a no claim bonus?

Check your insurance renewal letter to see if it outlines your no claim discount. If you can’t find it, contact your provider directly and they should forward you the relevant documents. 

Can named drivers build up a no claim discount?

In most cases, named drivers on another person’s policy can’t usually build up a no claim discount, as they need to be insured as the vehicle’s main driver. 

Read more NCD FAQs