No Claim Bonus NCB Explained How Discounts Work in 2026

The no claim bonus and the way insurers apply it can differ. For example, ‘Rating 1’ drivers haven’t made a claim for the last five years (this is usually the maximum number). Generally, ratings start at 6 and reduce by one for each year you don’t claim. The discount increases each year if you don’t claim, up to a maximum number of years. A no claim bonus (also called a no claims discount, safe driver reward, no claim bonus rating scheme, or rating level) typically gives you a discount on your car insurance. For a fairer comparison, you might want to factor this into the prices when you’re comparing car insurance quotes.
I have my renewal for my vehicle from NRMA, due at the end of the month. Sometimes It’s close to cheapest, and easier to deal with than some of the others. If they are removing a marketing/fake discounts of “no claim bonus”, then they might as well adjust premiums to suit. I already renewed for the car this year but will have to conduct more rigorous analysis across all policies next time to compare options.
Understanding what is a no claim bonus and how quickly it disappears helps you decide whether small claims are worth filing or if you should pay out of pocket to preserve your discount. If you understand what is a no claim bonus and how it builds, you can plan your insurance strategy more effectively. When you build up a strong no claim bonus rating, you offset higher-risk factors that might otherwise increase your premium.
Using the photos you provide, we can get started on preparing an accurate quote for smash repairs. Explore what car insurance excess actually is and some of the key questions around this topic. We support you every step of the way, from managing car insurance claims to providing a replacement vehicle. Your local Sheen panel beating workshop is here to restore your vehicle to pre-accident condition.
Get a competitive quote from National Cover to see how your no claim bonus translates into real savings on comprehensive car insurance. Request detailed quotes that show your base premium and discount separately, so you can see exactly how much your rating saves you. Understanding what is a no claim bonus helps you realise the discount percentage matters less than your final dollar cost. Your age, postcode, vehicle value, and driving purpose all influence your base premium before any rating discount applies. The second insurer costs you less even though both apply your rating 6 discount identically.
A not at fault claim may or may not affect your no claims bonus (NCB). According to the Insurance Council of Australia, premiums can rise anywhere between 10% to 30% depending on the insurer, claim type, and policy history. If your insurer deems you a higher risk, they may charge a higher premium on renewal. To avoid confusion, check with your insurer whether a not at fault claim will affect your premium.
You can buy an optional extra that protects your current rating. A new at-fault or non-recoverable claim can reduce or reset your rating, depending on the rules in your policy. The discount increases each year until you reach the insurer’s maximum level. A no claim bonus is a discount on a comprehensive car insurance premium. But in light of others’ experiences reported here under the new (NCB-less) system, I was expecting a potentially quite significant increase from last year. Yes, I will still be doing a comparison with other providers, including of other policies that contribute to one of the two 10% discounts. Insurance policies are not a commodity item so while prices vary, so does the value that the policy will deliver when a claim is made.
If you decide to pay for this protection, read the small print in the policy. Some insurance companies offer no deposit bonus Australia 2026 claim bonus protection. Even if you’re not at fault, insurers may increase your premium after you make a claim. This means the cost of your insurance will go up.
Preserving your rating by paying for minor damage yourself often costs less than the premium increases you’ll face after claiming. When you understand what is a no claim bonus truly costs you over time, you make better decisions about whether to claim for minor damage or pay repair costs yourself. The times I’ve needed them have all worked out well (except for the sting of paying the excess). With three kids under 25 driving two family cars it was always cheaper by $1.5-2k a year in premiums not to list them and pay $1400 extra excess if they had an at fault accident.