Please help me understand no claims bonuses.
Discussion
I am quite young so insurance is pretty expensive without these.
When I do quotes online insurance reduces dramatically in some cases by half after even just 1 year no claims... so I have a few ordered questions which hopefully someone will please answer in the same numbered order:
1) suppose I have two cars.
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2019 if I haven't made any claims on either car do I have two years no claims?
2) Getting something like 4 years no claims bonus on a single particular car. Is the only way to do get multiple years to take out a policy with a particular
insurance company and renew that policy 3 times each year making not a single claim?
3) In the above question if I decided to take out a policy on my car and didn't claim in that year- I get one year no claim bonus. If renewal price is then taking the piss and increases much more say and I switch insurance company the following year and decide to take out a new policy and the second year if I don't claim again is it back to square one- I am on 1 year no claims or now on 2 years?
4) In 3) I was just thinking as soon as I switch insurance company do I lose all my NCBs when I USE UP the NCB to get a discount with the new company, so even if I had 3 years NCB with previous company on my car when I switch to new company they USE the 3 year NCB to give me a signicant discount and now I'm back to 0 years NCB. Could someone please clarify this.
5) Using NCB on more than one vehicle.
Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
6) Can I split NCB's? In the above situation say I had two years no claims on that cheap car which I had for two years and didn't claim on. The following year what can I do? For both my two new cars can I say I have 2 years NCB to the new insurance companies for each car. Or if that's not allowed I can use one of my two years NCB on one car and the other year on the other car? I guess I could also use 2 years NCB on just one of the new cars and then
I have no more NCB on the other car?
7) Is my assumption in all this that as soon as as you use some years of the NCB your tally of years decreasing wrong. So If I had 2 years NCB to use this year I could use both years but the following year if I still didn't claim I would get a fresh 3 years NCB it wouldn't go down to 0 years NCB as I've been assuming?
8) Do I have to be the registered owner of a vehicle in order to insure it? Do I at least have to know who the registered owner is?
When I do quotes online insurance reduces dramatically in some cases by half after even just 1 year no claims... so I have a few ordered questions which hopefully someone will please answer in the same numbered order:
1) suppose I have two cars.
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2019 if I haven't made any claims on either car do I have two years no claims?
2) Getting something like 4 years no claims bonus on a single particular car. Is the only way to do get multiple years to take out a policy with a particular
insurance company and renew that policy 3 times each year making not a single claim?
3) In the above question if I decided to take out a policy on my car and didn't claim in that year- I get one year no claim bonus. If renewal price is then taking the piss and increases much more say and I switch insurance company the following year and decide to take out a new policy and the second year if I don't claim again is it back to square one- I am on 1 year no claims or now on 2 years?
4) In 3) I was just thinking as soon as I switch insurance company do I lose all my NCBs when I USE UP the NCB to get a discount with the new company, so even if I had 3 years NCB with previous company on my car when I switch to new company they USE the 3 year NCB to give me a signicant discount and now I'm back to 0 years NCB. Could someone please clarify this.
5) Using NCB on more than one vehicle.
Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
6) Can I split NCB's? In the above situation say I had two years no claims on that cheap car which I had for two years and didn't claim on. The following year what can I do? For both my two new cars can I say I have 2 years NCB to the new insurance companies for each car. Or if that's not allowed I can use one of my two years NCB on one car and the other year on the other car? I guess I could also use 2 years NCB on just one of the new cars and then
I have no more NCB on the other car?
7) Is my assumption in all this that as soon as as you use some years of the NCB your tally of years decreasing wrong. So If I had 2 years NCB to use this year I could use both years but the following year if I still didn't claim I would get a fresh 3 years NCB it wouldn't go down to 0 years NCB as I've been assuming?
8) Do I have to be the registered owner of a vehicle in order to insure it? Do I at least have to know who the registered owner is?
You are making this somewhat more complicated than it is!
To answer your questions:
1. You would have one year's NCB on each car.
2. Yes. (You could change insurer each year, it does not need to be the same company each year, but you would have to insure for four years without claiming to get 4 years no claims bonus).
3. You would now be on 2 years.
4. No, you don't use it up as such. The NCB would transfer to the new company.
5. No, you can only use a NCB on one car. That said, some insurers will give you a discount on a second car and 'mirror' the NCB.
6. Your final sentence is correct.
7. If you have 2 years this year, and don't claim for the next year, you'd have 3 years next year.
8. There is no such thing as a registered owner, but there is a registered keeper. You do not have to be registered keeper to insure a vehicle - the keeper could be, for example, a vehicle leasing company. You do need to tell the Insurer who the RK is.
To answer your questions:
1. You would have one year's NCB on each car.
2. Yes. (You could change insurer each year, it does not need to be the same company each year, but you would have to insure for four years without claiming to get 4 years no claims bonus).
3. You would now be on 2 years.
4. No, you don't use it up as such. The NCB would transfer to the new company.
5. No, you can only use a NCB on one car. That said, some insurers will give you a discount on a second car and 'mirror' the NCB.
6. Your final sentence is correct.
7. If you have 2 years this year, and don't claim for the next year, you'd have 3 years next year.
8. There is no such thing as a registered owner, but there is a registered keeper. You do not have to be registered keeper to insure a vehicle - the keeper could be, for example, a vehicle leasing company. You do need to tell the Insurer who the RK is.
Edited by MrBen1 on Tuesday 16th January 12:39
Ilovecbrs599999 said:
I am quite young so insurance is pretty expensive without these.
When I do quotes online insurance reduces dramatically in some cases by half after even just 1 year no claims... so I have a few ordered questions which hopefully someone will please answer in the same numbered order:
1) suppose I have two cars.
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2018 if I haven't made any claims on either car do I have two years no claims?
You have two one-year NCBs you can apply to two policies. You cannot by default apply it as two year's NCB to a single policy. I think it is unlikely an insurer would consider that.When I do quotes online insurance reduces dramatically in some cases by half after even just 1 year no claims... so I have a few ordered questions which hopefully someone will please answer in the same numbered order:
1) suppose I have two cars.
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2018 if I haven't made any claims on either car do I have two years no claims?
Ilovecbrs599999 said:
2) Getting something like 4 years no claims bonus on a single particular car. Is the only way to do get multiple years to take out a policy with a particular
insurance company and renew that policy 3 times each year making not a single claim?
You do not have to keep the same insurer, but generally only whole years will count. A policy ended at 11 months is worth nothing for earning NCB unless an insurer specifically agrees to accept it or has some kind of "accelerator" policy to consider 10 months as a year or whatever.insurance company and renew that policy 3 times each year making not a single claim?
Ilovecbrs599999 said:
3) In the above question if I decided to take out a policy on my car and didn't claim in that year- I get one year no claim bonus. If renewal price is then taking the piss and increases much more say and I switch insurance company the following year and decide to take out a new policy and the second year if I don't claim again is it back to square one- I am on 1 year no claims or now on 2 years?
Two years. You tell the second company that you have that 1 year NCB when you start your policy with them. They may ask for proof (original company renewal letter for example).Ilovecbrs599999 said:
4) In 3) I was just thinking as soon as I switch insurance company do I lose all my NCBs when I USE UP the NCB to get a discount with the new company, so even if I had 3 years NCB with previous company on my car when I switch to new company they USE the 3 year NCB to give me a signicant discount and now I'm back to 0 years NCB. Could someone please clarify this.
No. With no claims made, NCB continues to accummulate.Ilovecbrs599999 said:
5) Using NCB on more than one vehicle.
Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
Some companies will do this, some won't. You have to ask.Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
Ilovecbrs599999 said:
6) Can I split NCB's? In the above situation say I had two years no claims on that cheap car which I had for two years and didn't claim on. The following year what can I do? For both my two new cars can I say I have 2 years NCB to the new insurance companies for each car. Or if that's not allowed I can use one of my two years NCB on one car and the other year on the other car? I guess I could also use 2 years NCB on just one of the new cars and then
I have no more NCB on the other car?
Generally no, you can't split an NCB up and use it on more policies, though I suppose an insurer might consider it if asked? Finding someone who will mirror the full NCB would be better.I have no more NCB on the other car?
Ilovecbrs599999 said:
7) Is my assumption in all this that as soon as as you use some years of the NCB your tally of years decreasing wrong. So If I had 2 years NCB to use this year I could use both years but the following year if I still didn't claim I would get a fresh 3 years NCB it wouldn't go down to 0 years NCB as I've been assuming?
2 years at policy start followed by a claim-free year gives you 3 years NCB, yes.Ilovecbrs599999 said:
8) Do I have to be the registered owner of a vehicle in order to insure it? Do I at least have to know who the registered owner is?
Technically no, but you have to answer truthfully when they ask if you are the keeper etc.Insuring a car someone else is driving around may create some interesting liabilities for you.
The above is based on what I *think* you're asking, and my own experience, but there may be some better comments from someone who works in insurance.
Edited by InitialDave on Tuesday 16th January 12:50
its very simple really......
you hold a policy, keep it for one year, without making a claim, you get 1 years NCB... after the year is up, you can transfer this NCB to another insurer, the first will provide a letter confirming your ncb entitlement...
each additional year requires a claim free full calender year..... you could change the car twenty times in the year, the policy covers you and must be valid a full year, not a day less...
you can have the ncb on a multicar policy, the ncb is with the policyholder not the car, so all cars are covered by that ncb
firms can offer intro ncb discounts or even mirror ncb's with a multicar/driver policy .... you'd need to talk to a firm individually wrt this.....
they dont have to, up to them.... they are unlikely to mirror outwith a multicar policy, and you cannot divide any ncb up as you please between multiple poicies
you hold a policy, keep it for one year, without making a claim, you get 1 years NCB... after the year is up, you can transfer this NCB to another insurer, the first will provide a letter confirming your ncb entitlement...
each additional year requires a claim free full calender year..... you could change the car twenty times in the year, the policy covers you and must be valid a full year, not a day less...
you can have the ncb on a multicar policy, the ncb is with the policyholder not the car, so all cars are covered by that ncb
firms can offer intro ncb discounts or even mirror ncb's with a multicar/driver policy .... you'd need to talk to a firm individually wrt this.....
they dont have to, up to them.... they are unlikely to mirror outwith a multicar policy, and you cannot divide any ncb up as you please between multiple poicies
Eth2312 said:
Do you intend to commit insurance fraud...
Err... no? 
1. No, you would only have had cover for a month on one car and a day on the other so would still have nil no claims bonus on each policy.
MrBen1 said:
1. No, you would only have had cover for a month on one car and a day on the other so would still have nil no claims bonus on each policy.
I meant 17/02/2019. Now do I have 2 years no claims bonus?MrBen1 said:
5) No, you can only use a NCB on one car. That said, some insurers will give you a discount on a second car and 'mirror' the NCB
Huh? As soon as I change car I'm back to square one? 
0 years NCB. what do you mean by "mirror". The new insurer would continue the tally of Number of years no claims with my new car?MrBen1 said:
6. Your final sentence is correct.
So that's a categorical no I can't split? But can only use 2 years on the one new car and leave nothing for the other...? I thought above though you said I couldn't transfer NCBs at all even when I changed car?1) One year after inception of each policy you'd have 2 x 1 years NCB. Each is separate, you couldn't combine these together to form 1 x 2 years NCB to use on a single vehicle/policy
2, 3 and 4) You gain one years NCB for each year you are claim free on a particular policy. You would have to have insurance for four years to gain 4 years NCB. At renewal each year, you'll get a renewal notice and with this it will detail how many years NCB you have. If you move insurer, they will often ask for proof of NCB. You provide them with the renewal notice and this will allow you NCB to be transferred. It isn't lost by moving insurer.
The only time you might 'lose' NCB by moving insurer is if say for example you have 7 years NCB, but the new insurer only recognises a maximum of 5 years. The renewal notice provided by the new insurer the following year will state 5 years NCB rather than 8 years if you'd stayed with the old insurer.
5) It depends, usually the answer is no. NCB can usually only be used on one vehicle at a time. If you wanted NCB on two policies you'd either have to build up a separate NCB or alternatively, find an insurer that allows you to mirror NCB or find an insurer broker with a NCB mirroring scheme with particular insurers.
6) As above, any particular NCB built up can only be used once, unless the insurer or broker allowing mirroring of NCB. I've not come across splitting of NCB previously, it would probably be easier to find an insurer or broker to mirror the NCB,
7) NCB doesn't decrease unless you have an accident. It builds up each year you are claim free and can be transferred to another insurer. If you have an accident you don't usually lose all of it if you have 3 or more years. If you have an accident on 2 or less you usually lose all of it. The way to avoid losing NCB is to protect your NCB, this means you pay extra premium, but in the event of an accident you keep the NCB you have built up, rather than losing it. Insurers usually allow a 2 fault claims in 5 years if you protect your NCB, if you have a third fault claim in 5 years, you'll start losing some of that NCB. Insurers usually allow you to protect you NCB once you have 3 years NCB.
8) No, but you need to have an insurable interest in the vehicle
Ilovecbrs599999 said:
1) suppose I have two cars.
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2019 if I haven't made any claims on either car do I have two years no claims?
YOU HAVE 1 yr NCB on each policy..... even on a multicar policy it will still be 1 year NCB even if its two cars claim free!! because the insurer correctly assumes you can't be driving both cars at the same time....
2) Getting something like 4 years no claims bonus on a single particular car. Is the only way to do get multiple years to take out a policy with a particular
insurance company and renew that policy 3 times each year making not a single claim?
you get multiple years by being claim free every year.... one claim free year = +1 ncb year..... doesnt have to be same insurer or car even ... so 4 years ncb means you've held an active policy for 4 years without making a claim
3) In the above question if I decided to take out a policy on my car and didn't claim in that year- I get one year no claim bonus. If renewal price is then taking the piss and increases much more say and I switch insurance company the following year and decide to take out a new policy and the second year if I don't claim again is it back to square one- I am on 1 year no claims or now on 2 years?
2 years
4) In 3) I was just thinking as soon as I switch insurance company do I lose all my NCBs when I USE UP the NCB to get a discount with the new company, so even if I had 3 years NCB with previous company on my car when I switch to new company they USE the 3 year NCB to give me a signicant discount and now I'm back to 0 years NCB. Could someone please clarify this.
ncb are transferable, you old insurer will issue you with a note confirming ncb at year end, time of renewal
5) Using NCB on more than one vehicle.
Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
only on a multicar policy
6) Can I split NCB's? In the above situation say I had two years no claims on that cheap car which I had for two years and didn't claim on. The following year what can I do? For both my two new cars can I say I have 2 years NCB to the new insurance companies for each car. Or if that's not allowed I can use one of my two years NCB on one car and the other year on the other car? I guess I could also use 2 years NCB on just one of the new cars and then
I have no more NCB on the other car?
your ncb cannot be split between policies
7) Is my assumption in all this that as soon as as you use some years of the NCB your tally of years decreasing wrong. So If I had 2 years NCB to use this year I could use both years but the following year if I still didn't claim I would get a fresh 3 years NCB it wouldn't go down to 0 years NCB as I've been assuming?
ncb's only decrease if you crash/claim...
8) Do I have to be the registered owner of a vehicle in order to insure it? Do I at least have to know who the registered owner is?
If I insure the first today on 16/01/2018 and insure the second on 16/02/2018 an exact month later. On 17/02/2019 if I haven't made any claims on either car do I have two years no claims?
YOU HAVE 1 yr NCB on each policy..... even on a multicar policy it will still be 1 year NCB even if its two cars claim free!! because the insurer correctly assumes you can't be driving both cars at the same time....
2) Getting something like 4 years no claims bonus on a single particular car. Is the only way to do get multiple years to take out a policy with a particular
insurance company and renew that policy 3 times each year making not a single claim?
you get multiple years by being claim free every year.... one claim free year = +1 ncb year..... doesnt have to be same insurer or car even ... so 4 years ncb means you've held an active policy for 4 years without making a claim
3) In the above question if I decided to take out a policy on my car and didn't claim in that year- I get one year no claim bonus. If renewal price is then taking the piss and increases much more say and I switch insurance company the following year and decide to take out a new policy and the second year if I don't claim again is it back to square one- I am on 1 year no claims or now on 2 years?
2 years
4) In 3) I was just thinking as soon as I switch insurance company do I lose all my NCBs when I USE UP the NCB to get a discount with the new company, so even if I had 3 years NCB with previous company on my car when I switch to new company they USE the 3 year NCB to give me a signicant discount and now I'm back to 0 years NCB. Could someone please clarify this.
ncb are transferable, you old insurer will issue you with a note confirming ncb at year end, time of renewal
5) Using NCB on more than one vehicle.
Suppose I had a cheap crap car first year and I got 1 year no claims. and the next year (unlikely) I sell it and decide I'm gonna get 2 nice new cars.
Can I use that 1 year NCB on both cars to get a discount on both new cars' premiums?
only on a multicar policy
6) Can I split NCB's? In the above situation say I had two years no claims on that cheap car which I had for two years and didn't claim on. The following year what can I do? For both my two new cars can I say I have 2 years NCB to the new insurance companies for each car. Or if that's not allowed I can use one of my two years NCB on one car and the other year on the other car? I guess I could also use 2 years NCB on just one of the new cars and then
I have no more NCB on the other car?
your ncb cannot be split between policies
7) Is my assumption in all this that as soon as as you use some years of the NCB your tally of years decreasing wrong. So If I had 2 years NCB to use this year I could use both years but the following year if I still didn't claim I would get a fresh 3 years NCB it wouldn't go down to 0 years NCB as I've been assuming?
ncb's only decrease if you crash/claim...
8) Do I have to be the registered owner of a vehicle in order to insure it? Do I at least have to know who the registered owner is?
Yipper said:
Make no claims, you get a bonus.
You get a discount. Anything more than that might be a bonus.NCD is a simple concept, but with a few quirks that are often insurer specific:
1) For each year that you have a policy in effect that you don't make a claim on, you gain a years NCD on that specific policy.
2) The NCD is tied to a single policy, i.e. if you take out two policies and run them for a year without making a claim, you have 1 years NCD on each policy. You can not combine these together to get two years NCD on a new policy.
3) A multicar policy allows you to apply your NCD to multiple cars, under the same policy. However they don't always give you a saving over individual policies IME.
4) Some insurers will "mirror" i.e. copy your NCD onto a second policy.
5) If a claim is made against your policy (by you or a third party), you will typically lose 2 years of your NCD, though this may be insurer specific.
6) If you don't renew or cancel a policy then your NCD only lasts for two years, after which you start from zero (some insurers may extend this period).
Always read the small print.
Ilovecbrs599999 said:
I meant 17/02/2019. Now do I have 2 years no claims bonus?
Edited my original post when you edited yours - no you would have one years no claims bonus on each car, you can't add them together.Ilovecbrs599999 said:
Huh? As soon as I change car I'm back to square one? 0 years NCB. what do you mean by "mirror". The new insurer would continue the tally of Number of years no claims with my new car?
If you change your car- i.e. replace one with another, you retain your no claims bonus. However if you keep insuring the old car and buy an additional one, the NCB is still in use, so you cannot use it for the new car. By 'mirror', I mean that some insurers will allow a discount on an additional car, if you insure the existing car with them as well. 0 years NCB. what do you mean by "mirror". The new insurer would continue the tally of Number of years no claims with my new car?Ilovecbrs599999 said:
So that's a categorical no I can't split? But can only use 2 years on the one new car and leave nothing for the other...? I thought above though you said I couldn't transfer NCBs at all even when I changed car?
No you can't split an existing NCB.'2 years no claims bonus' is exactly what it sounds like. Insure yourself and drive for two years without claim.
Some insurance companies offer 10 month insurance policies and will award you a years' no claims bonus for 10 months which is about as close as you can get to accelerating this.
Some insurance companies offer 10 month insurance policies and will award you a years' no claims bonus for 10 months which is about as close as you can get to accelerating this.
MrBen1 said:
Alex said:
All you need to know is:
A no claim bonus can only be used on one car.
If you make a claim, it affects the no claim bonuses on every car you own.
WHAT A RIP-OFF!!
Not true?A no claim bonus can only be used on one car.
If you make a claim, it affects the no claim bonuses on every car you own.
WHAT A RIP-OFF!!
MrBen1 said:
No you can't split an existing NCB.
Mr2Mike said:
3) A multicar policy allows you to apply your NCD to multiple cars, under the same policy. However they don't always give you a saving over individual policies IME.
Ok guys what if I took out a multicar policy for one year on two cars and made no claims- I would get one years NCB on each car?so if the next year I decided to insure them separately I would get 1 year NCB on each policy?
dibblecorse said:
MrBen1 said:
Alex said:
All you need to know is:
A no claim bonus can only be used on one car.
If you make a claim, it affects the no claim bonuses on every car you own.
WHAT A RIP-OFF!!
Not true?A no claim bonus can only be used on one car.
If you make a claim, it affects the no claim bonuses on every car you own.
WHAT A RIP-OFF!!
Ilovecbrs599999 said:
Ok guys what if I took out a multicar policy for one year on two cars and made no claims- I would get one years NCB on each car?
so if the next year I decided to insure them separately I would get 1 year NCB on each policy?
Depends on the insurer's policy. I have, yes. That is because "multicar policy" was really "discount on having two concurrent policies".so if the next year I decided to insure them separately I would get 1 year NCB on each policy?
My current various policies are all with different insurers.
Ilovecbrs599999 said:
Ok guys what if I took out a multicar policy for one year on two cars and made no claims- I would get one years NCB on each car?
so if the next year I decided to insure them separately I would get 1 year NCB on each policy?
In general, one policy = one NCD, multicar is no different. You would only get a years NCD on two policies in that case if you could find an insurer that would "mirror" the NCD to a second policy.so if the next year I decided to insure them separately I would get 1 year NCB on each policy?
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