If you’re a responsible driver or homeowner in South Africa, you’ve probably heard of a No-Claims Bonus (NCB). This incentive is a great way to save on your insurance premiums over time. However, many people don’t fully understand how it works or how they can maximize their benefits.
In this article, we’ll break down everything you need to know about No-Claims Bonuses, including how they work, how they affect your insurance premiums, and the best ways to maintain and transfer your NCB.
What is a No-Claims Bonus?
A No-Claims Bonus (NCB) is a discount that insurance companies offer to policyholders who haven’t made a claim for a certain period. This reward system encourages safe driving and responsible homeownership by reducing the cost of your insurance premiums.
Every insurer works a bit differently, but generally speaking, the longer you go without making a claim, the greater your discount on your premium when it’s time to renew your policy.
How Does a No-Claims Bonus Work in South Africa?
Most South African insurers use an NCB structure based on the number of claim-free years you have. Here’s a general breakdown:
| No-Claims Period | Typical Discount Offered |
| 1 Year | 10% – 20% off premiums |
| 2 Years | 20% – 30% off premiums |
| 3 Years | 30% – 40% off premiums |
| 4 Years | 40% – 50% off premiums |
| 5+ Years | Up to 60% off premiums |
Key Factors That Affect Your No-Claims Bonus
- Type of Insurance – NCBs apply mostly to car insurance, but some home insurers also offer them.
- Claim-Free Period – The longer you go without a claim, the bigger the discount.
- Fault vs. Non-Fault Claims – If you’re at fault in an accident, you may lose your bonus. However, some insurers allow an NCB to remain intact for non-fault claims.
- Insurance Provider Policies – Every insurer has different NCB structures and rules, so it’s important to check your policy.
Best Tips to Maintain and Maximize Your No-Claims Bonus
1. Drive Safely and Responsibly
The easiest way to keep your NCB intact is to avoid accidents. Stick to speed limits, avoid distractions, and always stay alert on the road.
2. Consider a Higher Excess
Most insurers allow you to choose an excess amount—the portion you pay out of pocket when making a claim. Opting for a higher excess can reduce the likelihood of making small claims that could reset your NCB.
3. Think Twice Before Claiming for Minor Damages
If the repair cost is less than your excess or only slightly more, paying for it out of pocket could help you maintain your NCB and save you more in the long run.
4. Use a No-Claims Bonus Protector
Some insurance providers offer a No-Claims Bonus Protection Add-On, which allows you to keep your NCB even after making one claim per year. This can be useful if you want peace of mind without losing your discounts.
5. Compare Insurance Providers Regularly
Different insurers have different NCB policies. When renewing your policy, compare quotes from different insurers to find the best deal while keeping your No-Claims Bonus intact.
6. Check If Your NCB Can Be Transferred
If you switch insurers, you may be able to transfer your No-Claims Bonus to the new provider. Always confirm this before making the switch to ensure you don’t lose your discounts.
What Happens If You Make a Claim?
If you make a claim, your NCB may reset or decrease depending on your insurer’s policy. Here’s what usually happens:
- At-Fault Claims – If you are responsible for the accident, your NCB will likely be lost or reduced.
- Non-Fault Claims – Some insurers allow you to keep your NCB if the claim was due to theft, natural disasters, or another driver’s fault.
- Multiple Claims – Making more than one claim in a year significantly reduces your NCB benefits.
Can You Have a No-Claims Bonus on Multiple Policies?
Most South African insurers allow one NCB per policyholder, meaning you cannot apply the same NCB to multiple vehicles or properties. However, some providers offer multi-car or bundled discounts that may be worth exploring.
Frequently Asked Questions (FAQs)
1. How long does a No-Claims Bonus last?
If you take a break from having insurance, your NCB usually remains valid for up to 2 years. However, this varies between insurers, so check their policy before canceling your cover.
2. Can I transfer my No-Claims Bonus to another insurer?
Yes, many insurers allow you to transfer your NCB when switching providers. You may need to provide proof of your claim-free history from your previous insurer.
3. Does a No-Claims Bonus apply to home insurance?
Some South African insurers offer No-Claims Discounts on home insurance, but it’s not as common as with car insurance.
4. Can I use my No-Claims Bonus on multiple cars?
No, an NCB typically applies to one vehicle per policyholder. However, some insurers offer multi-car discounts.
5. Will I lose my No-Claims Bonus if I change cars?
No, as long as you remain insured with the same provider, you can transfer your NCB to your new vehicle.
6. Is a No-Claims Bonus the same as an excess?
No, an excess is the amount you pay when making a claim, while a No-Claims Bonus is a discount on your insurance premium for being claim-free.
Final Thoughts
A No-Claims Bonus is a fantastic way to save money on your insurance premiums over time. By driving safely, considering a higher excess, and avoiding small claims, you can protect and maximize your discounts.
If you’re looking for the best insurance deals that reward you for being a responsible driver or homeowner, consider working with an experienced South African insurance broker. They can help you find a policy that offers the best NCB benefits, ensuring you get the most out of your insurance plan.
Get a quick vehicle or home contents insurance quote from us today and start saving!
