Calculators & guides
No-Claim Bonus and How Claiming Affects Your Premium
By Sipho Dlamini · 4 min read · Updated 24 June 2026
- Builds with
- Each claim-free year
- Reduced by
- A claim, depending on the policy
- Often excluded
- Glass and some no-fault claims
A no-claim bonus rewards each claim-free year with a growing discount on your premium, which a claim can reduce or reset - so for small repairs near your excess, paying out of pocket and keeping the bonus is often cheaper overall. Knowing how the bonus works helps you decide when a claim is genuinely worth it.
Not every claim hurts your bonus equally, and some claims (like glass) are often excluded. The detail is in your policy.
This guide explains how to weigh a claim against its effect on your premium.
How the no-claim bonus works
For each year you do not claim, insurers typically increase a discount on your premium, up to a maximum. The longer your clean record, the bigger the discount. When you claim, that discount can be reduced or reset, so future premiums rise. The exact effect varies by insurer, so check your policy.
Which claims affect it
- Most at-fault accident claims reduce the bonus.
- Glass and windscreen claims are often excluded and do not affect it.
- No-fault claims where the other party is identified may be treated more leniently, since the insurer can recover costs.
- Theft and weather claims may or may not count - check your wording.
When a small claim is not worth it
If a repair is close to or below your excess, claiming makes little sense - you pay most of it anyway and may lose discount, pushing future premiums up. Get a quote, compare it to your total excess, and only claim when the benefit clearly beats the long-term premium cost.
Protecting your no-claim bonus
Some insurers let you protect or insure your no-claim bonus for a small extra premium, so one claim does not wipe out years of discount. If you have built up several claim-free years, this can be worth it. Ask whether it is available and what it costs.
Carrying your record to a new insurer
Years of claim-free driving are valuable when you switch. Many insurers recognise a no-claim history from your previous insurer, so keep proof of your record. When changing cars, ask to substitute the vehicle on your existing policy rather than cancelling, to keep the bonus intact. See our switching checklist.
Frequently asked questions
What is a no-claim bonus?
It is a discount on your premium that grows with each claim-free year, up to a maximum. The longer you go without claiming, the bigger the discount. A claim can reduce or reset it, which is why small claims near your excess are often not worth lodging.
Does claiming increase my car insurance premium?
It can. A claim may reduce or reset your no-claim bonus, so your renewal premium rises. The size of the effect depends on the insurer and the claim type. For small repairs, paying out of pocket and keeping the bonus is often cheaper overall.
Do windscreen claims affect my no-claim bonus?
Often not - many insurers treat glass and windscreen claims separately and do not count them against the bonus. This varies by policy, so check your wording. Where glass is excluded, there is little downside to claiming for a cracked windscreen.
Should I claim for minor damage?
Compare the repair cost to your total excess and the likely premium increase. If the repair is close to or below your excess, paying yourself and protecting your bonus is usually cheaper. Claim when the benefit clearly outweighs the long-term cost.
Can I protect my no-claim bonus?
Some insurers offer no-claim bonus protection for a small extra premium, so a single claim does not wipe out years of discount. If you have built up a strong claim-free record, it can be worth it - ask your insurer what it costs.
Will I keep my no-claim record if I switch insurers?
Often yes. Many insurers recognise a no-claim history from your previous insurer, so keep proof of your claim-free record. When changing cars, ask to substitute the vehicle on your existing policy rather than cancelling, to keep the bonus.
