How valuable is my no claims bonus - and should I protect my no claims discount?

Your no claims bonus can heavily reduce your car insurance premiums, but when is it no longer worth protecting?

Car insurance letter on laptop keyboard
(Image credit: John Lamb via Getty Images)

The cost of car insurance has skyrocketed in the past year, peaking at an average of £861 a year in the third quarter of 2024.

Prices have since started to drop, with Confused.com finding that the average cost of a policy was £757 a year in the second quarter of 2025.

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Years of no claims

Average annual premium*

0

£1,374.74

1

£1,153.47

2

£1,009.46

3

£909.92

4

£837.24

5

£802.71

6

£738.19

7

£714.98

8

£678.72

9

£576.04

10

£544.28

Daniel is a digital journalist at Moneyweek and enjoys writing about personal finance, economics, and politics. He previously worked at The Economist in their Audience team.

Daniel studied History at Emmanuel College, Cambridge and specialised in the history of political thought. In his free time, he likes reading, listening to music, and cooking overambitious meals.