No Claims Bonus Protection: Is It Worth It?

No claims bonus (NCB) protection is an add-on that lets you make a certain number of claims without losing the discount you’ve built up.

How NCB Works

Years No Claims	Typical Discount
0	0%
1	30%
2	40%
3	50%
5	60%
9+	65-75%

NCB Protection Explained

Without Protection	With Protection
Make one claim → lose 2+ years of NCB	Make one claim → NCB protected
Premium increases from lost discount	Premium increases but discount stays
May need to rebuild NCB from 0-2 years	Keep your accumulated NCB
Typically 0-2 claims allowed	Usually 1-2 claims protected per policy period

What It Costs

Typical Premium	NCB Protection Cost	Extra %
£500	£15-30	3-6%
£800	£25-50	3-6%
£1,200	£35-70	3-6%

When Protection Makes Sense

Scenario	Worth It?
9+ years NCB (65%+ discount)	Yes — losing this is expensive
Expensive premium already	Yes — protects large discount
Newish driver (1-2 years NCB)	No — small discount to lose
Very cheap insurance (< £400)	No — protection cost is proportionally high
You never claim anyway	No — self-insure instead

The Maths

Without Protection, After a Claim

Before Claim	After Claim
9 years NCB	Reset to 0
Premium: £300	Premium: £900+
Saving lost: £600

With Protection, After a Claim

Before Claim	After Claim
9 years NCB	NCB stays at 9 years
Premium: £300	Premium: £350-450
Protection cost: £25/year	Saving: £450-550 per claim

The Self-Insurance Alternative

Instead of paying £25/year for protection:

Years	Paid in Protection	Could Self-Insure
1	£25	£25 saved
5	£125	£125 saved
10	£250	£250 saved

If you never claim, self-insuring saves you the protection cost.

The Catch

Even with NCB protection:

Your premium may still increase	Why
Because you made a claim	Claims increase risk rating
Because your NCB is the same	Protection doesn’t prevent premium rising from the claim itself
Because of other factors	Inflation, risk pool changes

NCB protection keeps the discount. It doesn’t freeze the premium.

Which Insurers Offer It?

Insurer	Protection Cost	Claims Allowed
Direct Line	£20-30	1 per year
Aviva	£25-35	1 per year
Admiral	£25-35 (with MultiCar)	1 per year
LV=	Optional extra	Varies
Churchill	Included in some policies	1 per year

Bottom Line

NCB protection is worth it if you have 5+ years of no claims — the discount is valuable enough to protect. If you have fewer than 3 years, or your insurance is already cheap, the cost of protection isn’t justified. And remember: protecting your NCB doesn’t prevent your premium from rising after a claim — it just preserves the discount.