What is a no-claims bonus?

A no-claims bonus is a discount given to drivers on their car insurance so long as they don't make a claim on their policy. Each full year without a claim adds a year of no-claims bonus to your total, with each additional year earning you a larger discount on your policy. So precious, in fact, is your no-claims bonus that you can actually pay an extra fee to retain your no-claims bonus, even in the event you do end up having to make a claim. No-claims bonuses are transferable between insurers and policies, so you should be able to take yours with you even if you change insurance providers.