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How to transfer your company car no-claims bonus

A green car coming towards youCareful drivers can cut their motor insurance premiums even if their no-claims bonus was built up on a company vehicle. We show you how.

If you’ve been a company car driver and have a clean motoring record, you’ll be able to save money when you take out an insurance policy on your own vehicle.

Anyone who has recently given up their company vehicle – perhaps as a result of changing jobs – should be able to use any no-claims bonus built up on that car.

Most insurers give credit for up to five years without claims – and the maximum no-claims bonus could see your premiums reduced by half or more.

So it makes sense to transfer your bonus from your company car if at all possible. Here’s how.

1. Check your company’s insurance policy

Your company no-claims bonus (NCB) is only likely to be transferable if you were named on the policy for a particular car, and that this was for your sole use. If your employer had a fleet of vehicles that many of its staff were allowed to use, this is unlikely to give you a bonus.

The car should also have been for your personal as well as business use.

2. Get proof of your no-claims history

Normally when switching insurers, you need to get proof of any NCB you’ve built up from the previous provider.

But with company policies, many insurers will settle for confirmation from your employer.

This means getting a letter printed on headed notepaper, stating how long you were insured for, details of any claims (or confirmation that none have been made), and a statement to the effect that you were the only driver insured.

The letter should also say when your cover stopped. Some insurers will only apply your NCB if your company cover has recently lapsed, say within the last three months.

3. Use your bonus to save money

With this proof, you can now apply for car insurance using your full NCB. When you have found a quote you want to accept, it is probably wise to contact the insurer to tell them you are using an NCB transferred from a company car. In any case, they will need to see your employer’s letter.

What to watch out for

There are some reasons why insurers may not accept a company car NCB.

Esure, for example, is one firm which won’t apply the NCB if you still have the company car.

Many insurers will only offer the discounts to those over 25. And some vehicles may be excluded, for example taxis, vans or tractors.

These are all issues that need to be checked with individual insurers before the policy comes into effect. It is always best to clear up matters like these in advance to avoid any claims being turned down in future.

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Chris Torney

Chris Torney

Chris is the former personal finance editor at the Daily Express. He's been a journalist for more than 10 years and contributes to a wide range of finance and business titles.Read more from Chris

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