A no claims bonus rewards a clean claims record with a lower renewal premium. One claim can reduce or wipe the discount, depending on the insurer’s scale. Some policies let you protect the bonus for an extra fee so a single claim does not reset you fully.
Key takeaways
- Small claims can cost more in lost bonus than they save in cash, so do the arithmetic.
- Bonus scales and protection rules differ by company; they are not universal law.
- Switching insurers may or may not let you carry proof of a prior no claims record.
- It is a pricing tool, not a promise that future cover stays cheap forever.