How Much Does Car Insurance Go Down After 1 Year No Claims?
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On average, UK drivers with 1 year of no claims can expect their car insurance to drop by around 10% to 15%, depending on the insurer. It’s the first big step toward building a discount that can grow year-on-year, potentially saving you hundreds over time.
Insurers reward claim-free driving because it shows you’re a lower risk, and 1 year is enough to start seeing real savings.
Key Takeaways
What Is a No Claims Bonus (NCB)?
A No Claims Bonus (or No Claims Discount) is a reward given for each year you hold a policy and don’t make a claim. The more years you go without claiming, the higher the discount, often up to 60–70% off your premium after five or more years.
Insurers each have their own NCB scale, but 1 year usually unlocks:
- Around 10–15% discount
- The ability to start protecting your bonus (optional add-on)
- A better quote when comparing or switching providers
Does Everyone Get the Same Discount?
Not exactly. Several factors influence how much your premium drops:
- Your age and driving experience
- Vehicle type and insurance group
- Your postcode and driving history
- Whether you had named driver experience before
So, while 10–15% is a rough average for 1 year no claims, some drivers, especially younger ones, might see bigger savings as their risk profile improves.
How much will my insurance drop after 1 year no claims as a new driver?
Often between 10–15%, but it can vary. New drivers tend to see more impact as they move out of the highest-risk category.
Can I use no claims bonus on a new policy?
Yes, your bonus is transferable, as long as you get proof from your previous insurer.
What if I switch insurers, do I lose my bonus?
No. Just provide proof of your NCB to the new provider within their timeframe.
In Summary
- A 1-year no claims bonus typically earns you a 10–15% discount
- Discounts increase with each year you remain claim-free
- Your NCB is transferable and can be protected with some policies
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