Car Insurance Does cancelling insurance affect no claims bonus? Canceling your car insurance can indeed impact your no-claims bonus. View Carriers Please enter valid zip Compare top carriers in your area Written by Insure.com's EditorUpdated on: May 24, 2024 The page is part of the topic how to cancel car insurance Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. When considering canceling your insurance policy, it’s essential to understand how it may impact your no claims bonus (NCB). A no-claims bonus (NCB) is a reward given to policyholders for not making any claims during a specific period. If you cancel your insurance, you might lose your accrued NCB and also lead to higher premiums when you seek coverage again. Let’s delve into how canceling insurance affects your NCB and what considerations you should keep in mind. Key Takeaways Canceling car insurance can affect your no-claims bonus (NCB), which rewards claim-free periods. NCB accumulation leads to future premium discounts, but canceling insurance might reset NCB to zero, resulting in higher premiums later. Alternatives to cancelation include transferring NCB to a new policy, suspending the policy when not using the car, and planning ahead to align decisions with future insurance needs. Understanding the impact of cancelation on no-claims bonus NCB accumulation – As you drive claim-free over the years, your NCB increases, leading to potential discounts on future premiums. Cancelation impact – If you cancel your insurance and do not transfer the policy to another vehicle, your NCB might reset to zero, resulting in higher premiums when you secure coverage again. Transferring NCB – You can sometimes transfer your NCB to a new policy or vehicle if you switch insurers, but this depends on the provider’s policies. What are the alternatives to canceling your car insurance to retain your no-claim bonus? Policy transfer – If you plan to get a new car or change insurers, inquire about transferring your NCB to maintain the discount. Policy suspension – If your car will be unused for a while, explore the option of suspending your policy rather than canceling it to retain your NCB. Plan ahead – If you still want to cancel, consider the long-term impact on your NCB and assess if the decision aligns with your future insurance needs. Conclusion Canceling your car insurance can have consequences for your no-claims bonus. To preserve your accumulated NCB, explore alternatives like policy transfer or suspension, and plan ahead to make informed decisions regarding your insurance coverage. Always consult with your insurance provider to understand the specific policies and options available to you. In case you missed it Best Car Insurance Companies of 2024 Car insurance rates by state in 2024 What is full coverage car insurance? How much does car insurance cost for seniors in 2024? A complete guide to adding a teenager to your car insurance policy in 2024 What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Used car insurance costs: Most and least expensive models to insure The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to car insurance discounts Proper insurance coverage for college-bound children How to read your auto insurance policy A complete list of car insurance companies New driver insurance grace period: What you need to know How much do insurance agents make? Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 On this page Understanding the impact of cancelation on no-claims bonusWhat are the alternatives to canceling your car insurance to retain your no-claim bonus?Conclusion ZIP Code Please enter valid ZIP See rates