No Claims Bonus

A No Claims Bonus is a reward for not making a claim on your insurance policy, and is most commonly a feature of car insurance.

When you first take out a policy, you will usually be charged at the full rate. For every year where you do not make a claim, your premiums will be discounted, sometimes by up to 65% after a number of years.

This bonus is intended to prevent careful drivers paying too much to subsidise those who are less careful.