Building up a no claims bonus (NCB) can be a way to reduce your motor trade insurance premiums. Here, we’ll explain how NCB works in the motor trade world, as well as show you how to build, mirror, protect and transfer your NCB.
What is the no claims bonus for motor trade insurance?
Also known as a no claims discount (NCD), an NCB works much like it does for private motor insurance. You earn a discount on your premium for every year you don’t make a claim.
Most brokers offer up to five years of no claims bonus, but ChoiceQuote can offer up to eight. We also work with insurers who may allow you to protect your NCB.
Can I transfer my no claims bonus from my private motor policy?
Yes, you can transfer your no claims bonus from a private car or van policy to a motor trade insurance policy. This is a great option if you’re starting a business in the motor trade.
While your NCB continues to build on your motor trade policy, it's important to remember that if you leave the trade, most insurers won't allow you to transfer that NCB back to a private policy. This could be an issue if you’re planning to retire or leave the industry, for example.
What does mirroring no claims bonus mean?
Another option for new motor traders is to mirror their no claims bonus from a private vehicle or commercial van. This means they can keep and match their existing NCB with their motor trade policy.
The downside? You will still need to pay for your private motor or commercial vehicle policy. That said, this could be a good option if you’re starting out and you’re unsure how well your business will do.
How to build up your motor trade insurance no claims bonus
The best way to build or improve your no claims discount is not to claim on your insurance—although we know that’s easier said than done.
For example, if you're involved in an accident that causes £2,000 of damage and you have a £1,000 excess, you might be able to repair the damage for less than £1,000. In that case, it might be better not to claim—protecting your NCB and avoiding an excess payout.
You should still report the incident to your insurer, but make it clear you don’t want to claim. This ensures your no claims discount remains untouched, protecting your insurance premium from increasing at renewal. You also avoid paying the policy excess.
How to protect your no claims bonus
Some insurers let you pay to protect your no claims bonus. This typically means you can make one claim per year without losing your discount. Not all brokers offer this, but ChoiceQuote has access to insurers who do. This could lead to significant savings if you do need to make a claim.
How much can a no claims bonus save you?
Your no claims bonus may lead to significant savings on your insurance premium. Typically, the longer you go without making a claim, the more you can save.
Here are a few potential benefits:
- You could save on your total premium.
- Some policies may offer increasing discounts each year if you remain claim-free.
- Over time, the cumulative savings may add up to thousands of pounds.
Get more no claims bonus options with ChoiceQuote
With ChoiceQuote, you get more options for building, transferring, and protecting your motor trade insurance no claims bonus. Whether you’re starting out or switching policies, speak to ChoiceQuote today to see how our team of specialists can help.
FAQs
Please note that these Frequently Asked Questions are not a substitute for the policy wording. For full terms and conditions please see the policy documentation.
Can I transfer my no claims bonus between insurers?
Yes, you can transfer your no claims bonus (NCB) to a new insurer. To do this, you’ll usually need a letter or proof of NCB from your previous insurer, confirming the number of claim-free years.
Do I lose my no claims bonus if I need to claim?
Yes, you can lose your bonus if you haven’t paid to protect your no claims bonus. If you haven’t and you’re in a situation where you’re considering claiming, it may be worth covering the costs of damage yourself instead of losing your no claims bonus.
Remember, even if you’ve paid for bonus protection, some insurers may cover this for one accident per year.
How long is my no claims discount valid for?
For Motor Trade Road Risk insurance, the validity of a No Claims Discount (NCD) can vary depending on the insurer's terms and conditions. Typically:
- Many insurers allow an NCD to remain valid for up to two years from the expiry of your previous policy, provided no claims were made during that time.
- However, the rules for Motor Trade policies may differ, and not all insurers allow NCDs to be transferred between private motor insurance and Motor Trade Road Risk policies.
We recommend reviewing the specific terms of your policy or contacting your insurer directly to confirm the validity of your NCD.
Can I use my no claims bonus on two cars?
For Motor Trade Road Risk Insurance, the NCB is often applied to the policy as a whole, which may cover multiple vehicles. However, this is subject to the insurer’s terms and conditions, and not all insurers may allow this.
Do insurers ask for proof of no claims bonus?
Yes, you’ll likely need a letter from the previous insurer to confirm the number of years you have been claim-free.
How do I check my no claims bonus?
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Review your policy documents
Your NCB details are often included in your policy schedule or renewal notice. These documents may provide information on the number of years of NCB you have accrued. -
Contact your insurer
If you cannot find the information in your documents, you can contact your current or previous insurer. They should be able to confirm your NCB status and may provide a No Claims Bonus Certificate if required. -
Request proof of NCB
If you are switching insurers or need to provide proof of your NCB, you can request a formal No Claims Bonus Certificate from your current or previous insurer. This certificate will confirm the number of years of NCB you have earned under your Motor Trade Road Risk policy. -
Speak to your broker
If your Motor Trade Road Risk policy was arranged through a broker, you can contact your account manager or broker directly. They can assist you in obtaining your NCB details or liaise with the insurer on your behalf.
Can you transfer your motor trade insurance no claims bonus to a private policy?
Not typically. Most insurers don’t allow you to move your no claims bonus from motor trade policies back to private insurance. However, mirroring could help you retain your private bonus while operating in the motor trade.
The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as ChoiceQuote accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.