As a van driver, building a good no claims bonus can really help to lower the cost of your van insurance.
That’s why it’s important to know what a no claims bonus is, how it works, and how you can begin to build your own.
Let’s dive right in.
What is a no claims bonus?
A no claims bonus (NCB), also known as a no claims discount (NCD), is a discount on the cost of your van insurance. As the name suggests, it’s based on the number of years you've gone without making a claim.
The longer you drive without claiming on your business van insurance policy, the more years of NCB you earn (which means a bigger discount).
How do you earn a no claims bonus?
You earn a year of NCB for every 12 months you hold a van insurance policy without making a claim. If you cancel your policy mid-year, or switch insurers before the year is up, you won't earn the NCB for that partial year.
The more years you drive without making a claim, the more no claims bonus you earn.
Can you transfer your no claims bonus between vehicles?
Yes, you can usually transfer your NCB between vehicles, including from a car to a van. However, most insurers only allow you to apply the NCB to one vehicle at a time. Be sure to check with your insurer before taking out a policy or switching to a new provider.
What happens to your no claims bonus if you make a claim?
If you make a claim on your van insurance policy, your NCB may be reduced, or you may lose it entirely — it depends on the circumstances of the claim and your insurer's rules.
In most cases, if you're at fault for an accident, you'll lose two years of NCB per claim.
Can you protect your no claims bonus?
Most insurers (including us) offer the option to protect your NCB for an additional fee. This allows you to make a certain number of at-fault claims (usually up to 2) within a specified period without affecting your NCB.
However, protecting your NCB doesn't always guarantee your premium won't go up after making a claim.
Can I use my no claims bonus from a personal van on a courier van insurance policy?
In many cases, you can transfer your NCB from a personal van insurance policy to a courier van insurance policy, as long as the NCB is in your name and you meet the insurer's other requirements. It’s always best to check with your insurer when getting a quote.
How long does a no claims bonus last?
Your NCB stays valid as long as you maintain continuous van insurance cover. If you have a break and stop driving for two years or more (or switch from being the primary driver to a named driver), your NCB may expire, and you'll need to start building it up again.
Can a named driver earn a no claims bonus?
In most cases, only the main policyholder can earn and use the no claims bonus. However, some insurers may offer a named driver discount for claim-free driving. Check with your insurer to see if this applies to your business van insurance policy.
Does a no claims bonus reduce the cost of van insurance?
A no claims bonus can significantly reduce the cost of your van insurance. Generally speaking, the more years of NCB you earn, the bigger the discount you get.
How can I find out how many years of no claims bonus I have?
Your most recent van insurance renewal notice (or cancellation letter) should show the number of NCB years you've earned. If you can't find this information, contact your previous insurer and ask them to provide you with proof of your NCB.
