Insurance Glossary

No-claim bonus

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is no-claim bonus?

A no-claim bonus rewards you for going a period without claiming. Depending on the insurer it may take the form of a reduced premium, a cash-back amount, or a discount that grows the longer you stay claim-free.

Example

After a claim-free year, an insurer might reduce your premium or pay a cash-back bonus.

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