Understanding No-Claim Bonuses in Car Insurance
How NCBs accumulate, what makes you lose them, and how to protect yours.
A No Claim Bonus (NCB), also called a No Claim Discount (NCD), rewards you for not making claims. It can reduce your premium by 10–65% over several claim-free years.
How NCBs work in Australia
Most Australian insurers use a rating system (Rating 1 being the best). Each claim-free year advances you one level; each at-fault claim steps you back one or two levels.
Many insurers allow you to transfer your NCB rating to a new insurer, though the exact discount offered varies.
NCB protection
Some policies offer 'NCB protection' as an add-on — it lets you make one (or sometimes two) at-fault claims within a policy period without losing your rating. It's usually worth the small extra premium once you're at Rating 1.
Watch out
NCB protection doesn't protect you from premium increases after a claim — only from losing your discount rating. Your premium can still rise after an at-fault claim even with protection.
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