Can you use a no claims bonus from a company car?
Having a no claims bonus (NCB) can help reduce the cost of your car insurance. But if you’ve been driving a company car and have built up a no-claims history, you might wonder if you can transfer this to a personal vehicle. Here’s what you need to know about using a no claims bonus from a company car.
Understanding car insurance for former company car drivers
When you drive a company car, the insurance is usually covered by your employer or a fleet management policy. This means the no claims history is linked to a company car, which could make it harder to transfer it to a new personal policy.
However, some insurers allow you to transfer a no claims bonus from a company car to a personal vehicle, provided you have proof of your claims history.
Insurers usually require a letter from your employer or fleet manager confirming the time you’ve driven the company car and whether you’ve made any claims. This will help them assess your risk level and determine if they’ll honour the no claims discount.
Transferring your no-claims bonus from a company car to a personal vehicle
If you’re handing back the keys to your company car, you’ll need to provide specific details to your new insurer to transfer the no claims bonus.
Required information for the transfer
To transfer your no claims bonus, insurers could ask for the following:
- A letter from your employer or fleet manager confirming the number of years you’ve driven claim-free.
- Details of any claims made while driving the company car.
- The dates you were insured under the company policy.
Not all insurers accept no-claims bonuses from company cars, so it’s worth comparing policies and confirming with the new insurer directly. Some may accept proof of a clean driving record even if they don’t officially recognise company car no claims discounts.
Does making a claim on company car insurance impact your personal no-claims discount?
A claim made on a company car policy typically doesn’t affect your personal no claims bonus. However, insurers may ask about previous claims when calculating your premium, which could increase the cost of your personal insurance. If you’ve had multiple claims while driving a company car, this could make it harder to secure a competitive personal insurance quote.
If you’re weighing up your company car options, you might also find it helpful to compare salary sacrifice, company cars, and car allowances to see which works best for you.
Learn more about leasing with Synergy
Leasing can be an affordable and flexible option if you’re switching from a company car. Whether you’re looking for a compact city car or a family SUV, Synergy makes the leasing process simple and hassle-free. We offers a range of business leasing and personal leasing options to suit your needs
Understanding how to transfer a no claims bonus from a company car can help you save on personal insurance. Make sure to check with your insurer about their policy on company car no claims bonuses to get the best possible deal.
If you’re considering a company car, you might also find it helpful to learn how to create a company car policy to ensure you meet strict guidelines. For more information or to explore your leasing options, get in touch with our dedicated team today.
