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What is NCB in car insurance?

Last updated 15 January 2026

No Claim Bonus (NCB) is a discount applied to the own-damage portion of your motor premium when you complete a policy year without making a claim. It rewards the policyholder, not the vehicle.

How it builds up

  • The discount typically begins after the first claim-free year and rises in steps for each further claim-free year.
  • It is capped once you reach the top slab defined by the insurer.
  • A single claim usually resets the bonus, although some policies offer an NCB-protection add-on.

Transferring your NCB

Because the bonus belongs to you, it can normally be carried to a new insurer at renewal, and to a replacement vehicle, provided you renew within the permitted window and produce proof of the previous claim-free record.

Slabs, protection add-ons and transfer rules vary between insurers. Confirm the terms in your own policy document.

Related guides

This guide is educational and is not insurance advice. Terms differ between insurers and policies — see our disclaimer.