Car Insurance Without A No Claims Bonus

What is a no claims bonus?

A no claims bonus (also called a no claims discount) is a discount you build up for each year you drive and do not claim on your insurance. It is the way insurers reward customers who have not had to make a claim, and it is one of the biggest reasons two drivers in the same car can pay very different premiums.

It is lost or reduced when you claim, even when the claim is not your fault. If someone hits your parked car and leaves without giving their details, you may have to claim on your own policy and sacrifice the bonus you had started to build. Drivers who are new to insuring a car in their own name simply have not had the chance to earn one yet.

Can you get car insurance without a no claims bonus?

Yes. Insurers will quote drivers with no no claims bonus; you will just be priced as a higher risk than someone with an established record of claim-free years. Some specialist insurers focus on drivers with a limited no claims bonus, alongside young or inexperienced drivers and people with previous insurance cancellations.

Because insurers weigh a missing bonus differently, the gap between the cheapest and most expensive quote can be wide. Comparing a large number of providers matters more for you than for a driver with a long claim-free history. See also our guides for young drivers and convicted drivers, who often face the same problem.

How do you get cheaper car insurance with no no claims bonus?

Compare quotes from as many insurers as possible, then work through the factors you can control: your car, where it is kept, how it is protected and how you pay. The table shows which way each one tends to move your premium.

Adding an experienced named driver with a clean licence can also bring the price down, provided they genuinely drive the car. Claiming someone else is the main driver when you use the car most is known as fronting; it is fraud and invalidates the policy.

Is a black box worth it if you have no no claims bonus?

A black box policy can be one of the most effective options when you have no claims history, because it gives the insurer evidence of how you actually drive rather than relying on your record. The device monitors factors such as how fast you go, how sharply you brake, acceleration, cornering and the times you drive, and rewards safer drivers with cheaper insurance. Consistent safe driving may also earn mid-term discounts or a lower price at renewal.

Telematics is not for everyone. If you would rather not be monitored, you can still compare standard policies without a black box, and the other steps on this page apply just the same.

Does your car affect the price when you have no no claims bonus?

Yes, and it is one of the few things that is entirely within your control. Every car is placed into an insurance group, and cars in a lower group are cheaper to insure. If you have not bought your car yet, checking the group before you commit can make a significant difference to your premium.

• Smaller, lower-powered cars sit in lower groups and cost less to insure.
• Modifications can significantly increase the cost of cover.
• An immobiliser, a good alarm or an approved tracker can reduce it.
• Keeping the car off the road, ideally on a drive or in a garage, reduces the chance of damage or theft and feeds through to a cheaper price.

Should you pay monthly or annually with no no claims bonus?

Paying annually is cheaper overall, because monthly instalments are a credit agreement with interest added on top of the premium. When your premium is already higher than average because you have no bonus, that interest adds up.

If paying in one go is not realistic, you can still keep the cost down by comparing deposits and monthly totals as well as the headline price. Our low deposit car insurance guide explains what to check before taking a monthly policy, including the total you will pay over the year and what happens if you miss a payment.

How do you build and protect a no claims bonus?

You build a no claims bonus simply by holding a policy in your own name and getting through each year without claiming. The priority now is to find affordable cover so you can start earning the discount for future years.

Once you have a bonus again, some insurers offer no claims bonus protection for certain claims. It costs extra, and it becomes worthwhile once you have accumulated three or more years of claims-free driving. Bear in mind that being a named driver on someone else's policy will not normally build your own bonus unless the policy specifically includes that feature.