No Claims Bonus (NCB) is a term used to describe the number of years you have had motor insurance without making a claim. For example, if you have had car insurance for 4 years and you have not made a claim in that time, then you have 4 years No Claims Bonus. NCB is probably the single biggest factor affecting the cost of your premium. Every year that goes by without you making a claim is another year of bonus to be added on.

Generally speaking, the more NCB years you have, the cheaper your premium will be for the car you need to insure. This is because car insurance companies can see that your history regarding making any accident claim is a good one.

When changing provider, car insurance companies will usually ask you to prove your NCB in the form of a renewal notice or a letter from your current insurance provider. If you have several years of bonus but then make a claim, the underwriters for the insurance company will usually apply its rules of how much to knock back your No Claims Bonus years.

One option that is usually offered during the quotation process, is to protect your NCB. This ensures that in the event of you having an accident that was your fault, your bonus years will not be affected. There is usually a small cost for adding this feature to your quote.

In order to see how different prices can be, you should compare insurance quotes using a price comparison system. These systems will scour the marketplace and find the cheapest quote for your level of NCB.

Source by Andrew Bowen

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