Can you use a no claims bonus on two cars?

Whether you can use a no claims bonus on two cars is a commonly asked question. While it’s technically not possible to use your discount on multiple vehicles at the same time, there are good options available to make the most of your claim-free history.

Let’s take a look at what’s out there, including mirrored no claims bonuses, multi-car insurance policies, and bonus transfers between two cars…

Using a no claims bonus on multiple vehicles

If you’re building up a no claims bonus (or NCB) on one car, it makes perfect sense to want to apply this to any second car you own. After all, a no claims bonus can bag you a significant discount on your insurance premiums – somewhere in the range of 5-60% depending on the insurer and the number of years you’ve gone without making a claim.

A third of UK households own two cars or more, so it’s a common consideration. But when it comes down to it, what are you actually allowed to do?

Understanding how a no claims bonus works

It often feels as if your no claims bonus applies to you, the driver. You’re the one driving carefully, safely, and responsibly, building up your experience and claim-free history over time. But that’s not actually how no claims bonuses work.

In fact, they apply to your car itself, and your car only. That’s because you’re insuring the vehicle, not yourself, and because insurance policies are always for individual vehicles, even when it comes to multi-car policies (more on those later).

The more years you drive your car without making a claim, the bigger the discount you can accrue for that specific vehicle. The bonus is your reward for not claiming on your insurance.

Can a no claims bonus be applied to two cars?

Unfortunately, the answer is technically no. Because the discount applies to a particular car and its unique insurance policy, it can’t be used on a different car or policy at the same time. If you own a second vehicle, you need to build up a separate no claims bonus for it from scratch.

But this is only the technical answer! In reality, there are options available for making the most of your driving history across two cars. And it’s also common to transfer a bonus from one car to another, because it’s fine to use your no claims bonus on two cars as long as it’s not at the same time. This means your hard work isn’t lost if you get a new vehicle or change insurance provider. 

Let’s check out the alternatives available.

Strategies for maximising no claims bonus benefits on two cars

There are a couple of ways to make the most of your no claims bonus across two vehicles at the same time: mirrored no claims bonuses and multi-car insurance policies. 

Mirrored no claims bonuses

Some insurers offer what’s called a mirrored no claims bonus. This is where your no claims bonus for one car is reflected – or mirrored – in the policy for your second car. A mirrored bonus could be just what you’re looking for if you want to avoid having to build up two separate no claims bonuses.

If it sounds like a good option for you, here are a few tips:

• Only a few insurers offer mirrored discounts, so research what’s out there and each company’s T&Cs before choosing one. 
• For mirroring to apply, both cars need to be insured by the same provider. So if your vehicles currently have different insurers, you’ll need to wait until they both come up for renewal before you can make the switch and start accessing your mirrored no claims bonus. 
• Once you’ve found an insurer that offers mirroring, set your two vehicles up under one multi-car policy, with you as the policyholder for both. 

Multi-car insurance policies

You’ll need to take out a multi-car policy to receive a mirrored no claims bonus. But even if your provider doesn’t offer mirrored discounts, or if you decide mirroring isn’t the right option for you, it could still be well worth taking out a multi-car insurance policy for your vehicles.

For one thing, you can still use your no claims bonus on one car as you usually would to reduce the cost of your premiums overall. What’s more, insurers will usually provide a discount on multi-car policies, because they want to encourage you to choose them for all your vehicles. So even if you haven’t yet built up a separate no claims bonus on your second car, you can still save more money than you otherwise would!

Multi-car policies tend to be a cheaper option than holding separate policies for your two vehicles. Plus they make the whole process easier by bringing your cars under one policy and renewing their insurance at the same time.

There are a couple of other key advantages when it comes to multi-car policies:

• Multiple drivers – unlike a mirrored no claims bonus where the main driver has to be the same on both vehicles, multi-car policies let you insure several drivers – in some instances as many as 12 – as long as they’re all registered under the same address. You don’t even have to be related, providing a great option for flatmates and students as well.
• Separate no claims bonuses for each vehicle – although multi-car insurance technically covers all your vehicles under one policy, in fact each car still has its own unique insurance cover. Multi-car just means each individual policy is provided by the same insurer, for cars at the same address, and renewed at the same time.
  The upshot is that the main driver of each vehicle can still build up their own no claims bonus. It also means that, should you have to make a claim on one vehicle, the no claims bonuses of any other vehicles on the policy won’t be affected – although losing that one no claims discount might increase your premium overall.

At Howden, our dedicated team of specialists can help you find the best multi-car insurance policy for your vehicles. Find out more and get a quote today.

Transferring a no claims bonus between two cars

You can use a no claims bonus on two cars, just not at the same time. Thankfully, this means that even if you get a new vehicle or change your insurance provider, you don’t have to start your no claims bonus again from scratch. Instead, you can simply transfer it from one policy to the next.

Even though the discount technically applies to your vehicle, the ability to transfer acknowledges the role you as the driver have played in building up a claim-free history.

Transfer options

There are a few different types of transfer available:

• From one car to another
• From one insurance provider to another 
• From one driver to another, e.g. between spouses or partners
• From one type of vehicle to another, e.g. from a car to a van, or vice versa.

The first two are pretty standard, whereas the second two are a bit more unusual and will depend on the insurer.

How to transfer a no claims bonus

When your insurance policy is up for renewal, you’ll receive proof of the no claims bonus you’ve built up over that year from your insurer. When taking out a new policy for a different vehicle or with a different insurer, you can use this certificate to prove your no claims status. Some insurers may check your claims history using online data instead.

Transfers are usually straightforward, but here are a couple of things to keep in mind:

• You only build up the first or next year of your bonus if you go a full 12 months without making a claim on your policy. So be sure to complete your existing policy before switching to a new one.
• Insurers should automatically provide you with proof of your no claims bonus at the end of your policy, but if they don’t you can always contact them and request it.
• If there’s a gap between your policies, for example if you don’t own a car for a while, your no claims bonus still lasts – usually for up to two years. So as long as you find a new policy within this timeframe, you can transfer your bonus as normal.

Company cars

One common question is whether a no claims bonus can be transferred from a company car to a personal car. This is another one that varies between insurers – whether they allow you to have built up a no claims bonus on a company car in the first place, and whether they allow you to transfer it.

Some unfortunately don’t, while others might under certain conditions. In these instances, you’ll usually need to have been the policyholder and the only person who drove the company car. Or rather than transferring a no claims bonus, it might be that your insurer offers a driver history discount on your personal car instead.

Learn more about ex-company car insurance and how we can help you find the best deal.

Pitfalls and limitations of using a no claims bonus on two cars

Generally speaking, using a no claims bonus on two cars is a great way to save money. But there are some disadvantages to consider.

Potential drawbacks

• Mirrored claims – the main pitfall with mirrored no claims bonuses is that, if you have to make a claim on one vehicle, it will unfortunately affect the discount you receive on your other vehicle. This is because the mirroring works both ways – reflecting both your bonus and your claims across both cars. 
• Strict criteria – insurers can attach quite a lot of conditions to mirrored bonuses. For example, you may have to be of a certain age or have a minimum number of years’ experience, which can exclude younger or newer drivers.
• Different discounts – when it comes to transfers, different insurers offer different no claims discounts. So just because you were receiving particular discounts on your previous policy doesn’t mean you’ll get the same discounts on your next one. This is why it’s a good idea to shop around when your policy comes up for renewal to find the best deal for you. And we can help! Check out our car insurance options.

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