No Claim Bonus (NCB) is a term used to describe the number of years you’ve had auto insurance without making a claim. For example, if you have had auto insurance for 4 years and have not made any claims in that time, then you have 4 years of No Claim Bonus. The BCN is probably the most important factor affecting the cost of your premium. Each year that passes without you filing a claim is another bonus year that can be added.
Generally speaking, the more NCB years you have, the cheaper the premium for the car you need to insure. This is because auto insurance companies can see that your record with regard to filing any accident claim is good.
When changing providers, auto insurance companies will usually ask you to prove your BCN in the form of a renewal notice or a letter from your current insurance provider. If you have multiple bonus years but later file a claim, the insurance carrier’s underwriters will generally apply their rules about how much to reduce your bonus years without claims.
One option that is often offered during the listing process is to protect your NCB. This ensures that in the event you are in an accident through your fault, your bonus years will not be affected. There is usually a small cost for adding this feature to your listing.
To see how different the prices can be, you must compare insurance quotes through a price comparison system. These systems will scour the market and find the cheapest quote for your NCB level.
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