No Claim Bonus Tips: How to Maximise Savings on Car Insurance Renewals

Renewing your car insurance doesn’t always mean paying a high premium. If you drive carefully and avoid raising claims, you can benefit from the motor insurance no-claim bonus (NCB) — a reward given by insurers for claim-free years. Over time, this bonus can help you save significantly on your premiums, making it one of the most valuable benefits for policyholders.

But many car owners don’t fully understand how NCB works or how to make the most of it. Let’s explore the concept in detail and go through some practical tips to maximise your savings.

What is No Claim Bonus in Car Insurance?

The no claim bonus is a discount offered by insurers on your car insurance premium for every claim-free year. It starts at 20% after the first year and can increase up to 50% over five consecutive years.

For example:

• 1 claim-free year → 20% discount

• 2 consecutive claim-free years → 25% discount

• 3 consecutive claim-free years → 35% discount

• 4 consecutive claim-free years → 45% discount

• 5 consecutive claim-free years → 50% discount

This discount applies only to the “own damage” portion of your policy and not to the third-party liability component, which is mandatory and fixed.

Why is NCB Important?

• Encourages Safe Driving – Rewards you for being cautious on the road.

• Saves Money – A maximum of 50% discount on premiums can lead to major savings.

• Transferable Benefit – NCB stays with you even if you switch insurers or buy a new car.

• Long-Term Value – The more claim-free years you maintain, the higher the reward.

How to Maximise Savings with Motor Insurance No Claim Bonus

Here are some practical tips to make the most of your NCB:

1. Avoid Small Claims

It may be tempting to raise a claim for minor repairs, but doing so can cost you your NCB and the long-term savings attached to it. If the repair cost is lower than the potential discount you lose, it’s wiser to pay out of pocket.

2. Opt for Voluntary Deductibles

By agreeing to bear a portion of the claim, you reduce your premium. Combined with NCB, this can make your policy even more affordable.

3. Transfer Your NCB When Changing Cars

When you sell your old car and buy a new one, remember that NCB belongs to the policyholder, not the vehicle. Inform your insurer and carry forward your accumulated bonus.

4. Choose Long-Term Policies

Some insurers offer long-term comprehensive policies. Maintaining a claim-free record during this tenure ensures uninterrupted accumulation of your bonus.

5. Protect Your NCB with an Add-On

An NCB protector add-on allows you to make a limited number of claims in a year without losing your bonus. This add-on is especially useful if you want to safeguard your discounts against minor mishaps.

6. Drive Responsibly

Safe and defensive driving habits are the simplest way to maintain a claim-free record and enjoy maximum NCB benefits.

How to Check and Use NCB While Buying Car Insurance Online

When renewing your car insurance online, the accumulated NCB is automatically reflected in your renewal premium. Always cross-check the percentage applied to ensure it matches your claim history.

Steps to use NCB effectively:

1. Log in to your insurer’s website or app.

2. Enter your policy details for renewal.

3. Check the NCB discount applied.

4. Apply add-ons like NCB Protector for extra benefits.

5. Complete payment and download your updated policy.

With insurers like Zurich Kotak General Insurance, the process is simple, transparent, and ensures your savings are applied accurately during renewals.

Common Mistakes to Avoid with No Claim Bonus

1. Forgetting to Transfer NCB – Many policyholders lose their bonus when buying a new car because they don’t inform their insurer.
   

2. Making Frequent Small Claims – One minor claim can reset your NCB to zero.
   

3. Not Renewing on Time – If your policy lapses beyond 90 days of expiry, you lose your accumulated NCB.
   

4. Ignoring Add-Ons – Skipping the NCB protector can cost you valuable discounts after just one claim.
   

5. Misunderstanding Coverage – Remember, NCB applies only to own-damage premiums, not third-party liability.
   

Is NCB Really Worth It?

Absolutely. Over five years, NCB can reduce your premiums by half, which is a significant saving for car owners. Moreover, it motivates responsible driving, which benefits not just you but also other road users.

The key is to balance your claim decisions. For major accidents, raising a claim is necessary. But for minor damages, preserving your NCB often proves more beneficial in the long run.

Trusted providers like Zurich Kotak General Insurance recommend that customers consider add-ons like NCB Protectors to maintain their savings while enjoying comprehensive coverage.

Conclusion

The motor insurance no claim bonus is one of the smartest ways to save on your policy renewals. By driving responsibly, avoiding unnecessary claims, and protecting your NCB with add-ons, you can maximise discounts over time.

With the convenience of purchasing car insurance online, monitoring and applying your NCB is easier than ever. For car owners who value savings as much as security, understanding and leveraging NCB is an essential step.