Okuzeka
Insurance vocabulary · Motor Insurance

No-claims bonus

Meaning in insurance, with examples

nounCommon term

In insurance, no-claims bonus means: A discount on the premium given to policyholders who have not made a claim, which usually grows with each claim-free year.

In Turkish: hasarsızlık indirimi, hasarsızlık basamağı

How it is used

Very common in motor insurance. Also called a 'no-claims discount' (NCD) or, in the US, a 'claims-free discount'. Drivers build up, protect or lose their bonus, and a single claim can reduce it at renewal.

Example sentences

  1. With five years' no-claims bonus, your premium is almost half the standard price.

  2. She paid for the small scratch herself to protect her no-claims bonus.

Common collocations

  • protect your no-claims bonus
  • lose your no-claims bonus
  • years of no-claims bonus
  • no-claims discount
  • claims historyThe record of all claims a person or company has made in past years, used by insurers to price and accept risks.
  • car insuranceInsurance for a car and its driver that covers damage to other people and their property and, depending on the policy, damage to the car itself.
  • renewalThe continuation of a policy for another period, usually a year, often with an updated premium and conditions.
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.

More terms: Motor Insurance

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This page explains English vocabulary for learners. It is not financial advice.