How to Prove No Claims Bonus

Two Parts:Gathering ProofProving Your No Claims Bonus

A No Claims Bonus is the discount an insurer will apply to your premium payments as a reward for not making a claim on your insurance policy. The amount of the discount will depend on the insurer and the number of years without a claim. After five years without a claim, you might qualify for up to a 75% discount on your premium.[1]

Part 1
Gathering Proof

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    Identify why you need proof. If you are renewing your insurance policy with the same company, then you shouldn’t need proof. The insurance company should know whether or not you have filed a claim.
    • If you file a claim that results in a payout, then you might lose all of your No Claims Bonus (NCB). By contrast, with other insurers you might lose only some of your bonus.[2]
    • However, if you were struck by another car and found not to be at fault, then your NCB might not be affected.[3]
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    Find your renewal letter. If you are switching insurers, then you will need to show the new insurer a copy of your renewal letter. The renewal letter will include proof of your No Claims Bonus.[4]
    • If you switch policies before the year is up, you will forfeit your NCB. So be sure to make sure that you switch after the policy year is finished. This might require that you begin researching new insurance policies a month or two before your current policy expires.
    • Note that you should be able to switch the policy to a different car before the year is out. Call your insurer to check its specific policy.[5]
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    Request a renewal letter. If you did not get a renewal letter, or if you replaced it, then you should contact the insurer and ask for another letter. Have the letter sent directly to you instead of to the other insurance company. You will want to keep the original for your records.

Part 2
Proving Your No Claims Bonus

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    Ask what proof you need. Typically, the renewal letter should be sufficient. However, everyone’s circumstances are unique. For example, you may be trying to transfer a No Claims Bonus built up on a company car. Some insurers may allow this but only in certain circumstances. In this situation, the insurer may want to see that you were listed on the company car’s insurance policy.[6]
    • Also, you may be trying to transfer an NCB overseas. If you built up a five-year NCB in the United States but want to transfer it to the United Kingdom, then you need to ask if this is possible.[7]
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    Send a copy of your renewal letter. Speak to an insurance agent for your new insurer over the phone and ask where you should send the letter. Send it recorded delivery. In the United States this is called “certified mail” with return receipt requested. This will notify you when the letter has been received so that you know it reached its destination.
    • Be sure to send it soon after buying your new policy. You should send it within 14 days, if not sooner.[8]
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    Follow-up with additional information. If you are contacted by the new insurer for additional information, be sure to provide it promptly.
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    Think about paying to protect your NCB. You have the option of “protecting” your NCB. Depending on the policy, you can have one or two “at fault” accidents without your bonus being affected.[9] You will need to pay for this protection—about 5-10% of your premium.[10]
    • You should also be aware that an at-fault accident on your record will increase the baseline premium, even before your NCB is applied. Accordingly, your premium will go up, but not by as much as it would if you didn’t protect your NCB.[11]

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