# No-claims bonus explained > Cars & motoring · Last updated 4 July 2026 Canonical HTML: https://moneyguide.org.uk/cars-motoring/no-claims-bonus-explained/ Markdown mirror: https://moneyguide.org.uk/cars-motoring/no-claims-bonus-explained.md ## Quick answer A no-claims bonus (NCB) is a discount for each claim-free year — often up to 60%–70% after five or more years. It is usually portable between insurers but proving it at switch requires your renewal notice or NCB certificate. No-claims bonus is the biggest lever on car insurance cost after age and postcode. Understanding how it builds, transfers and can be protected helps you compare quotes accurately and avoid losing years of discount after one claim. ## Key facts - Each claim-free year typically adds 10%–15% discount up to a ceiling around five to nine years - One at-fault claim usually steps you back two to three years on the NCB scale - Protected NCB lets you claim once or twice without losing discount — for an extra premium - Named drivers do not earn their own NCB on someone else's policy unless they take out their own ## How NCB builds Insurers use their own NCB scales — five years with one insurer may not equal five years' discount with another, though most honour proof up to a capped number of years. Non-fault claims may not affect NCB if the insurer recovers costs from the other party — check policy wording. ## Switching insurers At renewal, your insurer sends proof of NCB. When switching mid-year, request an NCB certificate from your old insurer — most issue within a few days. Comparison sites ask for years of NCB — enter the number your current insurer would confirm, not an estimate. ## Protected no-claims bonus Protection costs extra — typically 10%–15% of premium. It usually allows one or two claims in a period without stepping back the NCB scale. Protection does not stop premium rises after a claim — only the NCB step-back. Insurers can still increase price based on claims history. ## Frequently asked questions ### Do named drivers earn NCB? Named drivers on someone else's policy do not build their own NCB unless the insurer offers named-driver experience transfer — uncommon. They need their own policy to build NCB. ### What if I have a gap without insurance? Long gaps may reset NCB with some insurers. Short gaps between selling and replacing a car are often accepted with proof. ### Does NCB apply to multi-car policies? Each car may have its own NCB on a multi-car policy, or the policy may use the best NCB across cars — check the insurer's rules. ## Primary source https://www.gov.uk/vehicle-insurance ## Related - [Compare car insurance](https://moneyguide.org.uk/cars-motoring/compare-car-insurance-guide/) - [Car insurance explained](https://moneyguide.org.uk/cars-motoring/car-insurance-explained/) - [Young driver telematics](https://moneyguide.org.uk/cars-motoring/young-driver-and-telematics-insurance/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.