How sharing your no-claims bonus could slash a loved one’s insurance costs
Drivers can now transfer their hard-earned no-claims bonus to help loved ones secure better car insurance rates. This can be particularly beneficial for first-time drivers or those looking to save on their premiums.
To transfer a no-claims bonus, policyholders need to fill out an NCB assignment form. This process is most advantageous when the recipient stands to save significantly on their insurance costs. It's crucial to compare quotes beforehand to ensure net savings and understand the insurer's terms.
While no-claims bonuses can be transferred to first-degree relatives, spouses, and registered partners, it's not always beneficial for the original policyholder. They may lose out on discounts or have to pay more for their own insurance. Additionally, policyholders should consider their age and the recipient's driver's license duration, as the number of claim-free years that can be transferred may vary.
In the event of a policyholder's death, the no-claims bonus can be transferred within 12 months to a qualifying family member.
Transferring a no-claims bonus can help loved ones secure better car insurance rates, but it's essential to weigh the pros and cons and understand the insurer's terms. It's a thoughtful way to help others save on their premiums, but it's not always the best option for the original policyholder.
