Acorn Insurance
Acorn Insurance

What a No Claims Bonus is

Are you looking to take out a new car insurance policy, but wondering what a No Claims Bonus (NCB) is? NCB could have a positive impact on your policy price at purchase or renewal. As personal injury motor claims continue to decline, says government’s CRU data, it may be beneficial to have an awareness of the topic. For example, With Acorn, in particular, we can offer up to 31% worth of discounts for customers utilising their NCB. 

Since its founding in 1982, Acorn has provided specialised insurance within the UK for private cars. If they are not combined with another policy, we are delighted to provide NCB reductions on annual policies. Acorn Insurance has been providing insurance for over 40 years. We want our customers to be aware of the NCB criteria and how it may affect prices. 

No Claims Bonus Explained

A No Claims Bonus (NCB) can also be known as a No Claims Discount. It is a record of the years during which no claims have been filed under your car insurance policy. 

For example, an NCB of five years or more could save you up to 31% percent on your insurance premium. However, this value varies from insurer to insurer. NCB is usually structured from 1-5 years: the more years accrued, the higher the discount. 

NCB rises each year that passes without an insurance claim. Consequently, it may be 5% one year and 10% the next. Each vehicle will have its own NCB. 

At Acorn, the average NCB discounts (for Haven products) applied to that number of years are as follows: 

  • One year – up to 18% 
  • Two years – up to 23% 
  • Three years – up to 25% 
  • Four years – up to 28% 
  • Five or more years – up to 31% 

No Claims Bonus Protection

No Claims Bonus Protection refers to the ability to file an insurance claim without completely losing your No Claims Discount. The amount of claims a motorist may submit in each period and still be eligible for the discount is often capped. 

A driver who opts for No Claims Bonus Protection safeguards the No Claims Discounts they have accrued. Imagine how frustrating it would be to lose your NCB having driven for years without incident. 

It is important to remember that NCB protection does not safeguard the entire cost of your insurance policy. Your insurance policy’s cost may go up after an accident, even if you were not at fault. 

How to get a No Claims Bonus if you have none

Your NCB will increase by one year for each annual period that you remain insured without filing a claim. You are allowed to accumulate an infinite number of NCB. Most insurers, however, will only calculate discounts for periods of up to five years. Proof of this can be requested from your insurer. 

This may be particularly useful for Young Drivers, or newly qualified drivers, who are looking to reduce costs over time. The more time that elapses since passing your test without a claim could see a positive effect on price. 

Once you have gained a No Claims Discount, consider protecting it to ensure you can keep building the bonus. 

Start Collecting No Claims Bonus Today!

With over 40 years of experience in the industry, Acorn is well-established! We consider drivers classed as ‘higher risk’ for private car insurance policies. This includes motorists with driving or non-driving convictions. If you are looking to start accumulating an NCB, secure a policy that is right for you! Click “Get a Quote” today for an instant online quotation and start collecting an NCB with Acorn Insurance! 

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