No Claims Bonus (NCB) is a discount that can often be applied if you have had insurance and not made a fault claim (ie. a claim that was deemed to be your fault) for 12 months or more.
How does No Claims Bonus affect the cost of your insurance in the future?
The discount can grow each year until a fault claim is made, providing that insurance remains in force, until a maximum discount is reached.
This can result in a discount to your premium in some cases, however the discounts vary by insurer.
If you have Protected No Claims Bonus
In this case, whilst a fault claim may still increase your premium the following year, the discount you receive based on the number of years No Claims Bonus accrued on that total premium will remain the same.
The added benefit of protecting your bonus can also sometimes result in a higher premium.