How to transfer no claim bonus of your motor insurance policy to a new car?

Transferring a no claim bonus (NCB) from one car insurance policy to another is a smart move that can save you a significant amount of money on your premiums. Understanding the process of transferring your no claim bonus ensures you maximise your benefits whether you’re upgrading to a new vehicle or simply changing insurer. Here’s a detailed guide on how to transfer the no claim bonus of your motor insurance policy to a new car.

Understanding the no claim bonus

A no claim bonus is a reward given by insurer to policyholders who haven’t made any claims during the policy term. It typically results in a discount on the renewal premium, increasing with each claim-free year. This bonus can significantly reduce your car insurance costs over time.

Benefits of transferring your no claim bonus

  • Cost savings: The primary benefit of transferring your no claim bonus is the reduction in premium costs. The more years you accumulate without making a claim, the higher the discount you can receive.
  • Reward for safe driving: Transferring your no claim bonus recognises and rewards your safe driving record, ensuring you don’t lose out on benefits.
  • Continuity of benefits: Transferring the no claim bonus ensures you maintain the financial advantages and discounts earned over the years.

Steps to transfer your no claim bonus

1. Inform your current insurer

The first step is to notify your current insurer about your intention to transfer your no claim bonus to a new car. This can be done when you’re either selling your old car or planning to switch to a new vehicle. Your insurer will guide you on the necessary documentation and the process involved.

2. Obtain a no claim bonus certificate

Request a no claim bonus certificate from your current insurer. This document officially states the percentage of no claim bonus you’ve accrued and serves as proof of your claim-free record. The certificate is crucial for transferring your no claim bonus to a new insurance policy.

3. Purchase insurance for your new car

When you buy a new car, you’ll need to purchase a new insurance policy. During this process, inform your new insurer about your existing no claim bonus and provide them with the no claim bonus certificate. Ensure that the details in the certificate match your new policy requirements.

4. Submit the required documentation

The insurer will ask for several documents to process the no claim bonus transfer. These may include:

  • No claim bonus certificate: As mentioned earlier, this is the official document from your previous insurer.
  • Sale deed or delivery note: If you’ve sold your old car, provide proof of sale. If you’re transferring the no claim bonus due to a new purchase, submit the delivery note of the new vehicle.
  • New policy application: Fill out the application form for the new insurance policy, ensuring all details are accurate.

5. Verify the transfer

After submitting the required documents, your new insurer will verify the No-Claim Bonus certificate and process the transfer. It’s important to follow up to ensure that the No-Claim Bonus has been correctly applied to your new policy. This will be reflected in the premium amount you need to pay.


Transferring your no claim bonus to a new car is a straightforward process that can lead to substantial savings on your car insurance premiums. You can ensure a seamless transfer and continue to benefit from your safe driving record by understanding the steps involved and taking proactive measures. Always stay informed about your insurance terms and make the most of the rewards offered for your claim-free years.

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