What is a no-claims bonus?
A no-claims bonus is a discount given to drivers on their car insurance so long as they don't make a claim on their policy. Each full year without a claim adds a year of no-claims bonus to your total, with each additional year earning you a larger discount on your policy. So precious, in fact, is your no-claims bonus that you can actually pay an extra fee to retain your no-claims bonus, even in the event you do end up having to make a claim. No-claims bonuses are transferable between insurers and policies, so you should be able to take yours with you even if you change insurance providers.
Related glossary terms
Insurance groupEvery car in the UK is ranked within a specific car insurance group – these range from 1 to 50. Your car's group is determined by a range of factors including its make, model, trim and engine specification – as well as the year it was registered.Black boxA black box is a casual name for a telematics device. Black boxes are required by some insurance companies, especially for younger drivers in order to reduce their premiums.NCAP - New Car Assessment ProgrammeA government-run scheme designed to measure and improve the safety of new cars.