What is a no-claims bonus?

A no-claims bonus, or no-claims discount, is a reduction in your premium for each consecutive year you don't make a claim. It typically builds up over several years and can meaningfully lower what you pay.

Making a claim usually reduces or resets it, and it's worth knowing that even a non-fault claim, one that genuinely wasn't your fault, can sometimes still affect your no-claims bonus depending on the insurer and policy wording, since it's often based on whether a claim was made rather than who was to blame.

Many insurers offer "protected" no-claims bonus as a paid add-on, which lets you make a limited number of claims within a set period without losing the discount. It's worth checking exactly what it does and doesn't protect before assuming it covers everything.