Do you lose no-claims bonus without insurance in Australia and UK, you may lose no-claims bonus if you have no insurance for more than 2 years without insurance, as no-claims bonus valid for 2 years without insurance with most insurers, with some UK insurers allowing 3 years, after which bonus expires and you lose discount 20% to 60% saving $160 to $900 per year on comprehensive $800 to $1,500 per year. No-claims bonus, also called no-claims discount NCD, is discount for claim-free years 20% for 1 year, 30% for 2 years, 40% for 3 years, 50% for 5 years, 60% for 6+ years, saving $160 to $900 per year, valid while you have continuous insurance, and if you have no insurance, bonus stays valid for 2 years without insurance in Australia and UK, with some UK insurers like Aviva, Direct Line allowing 3 years, after which bonus lapses and you start at 0 years 0% discount. For example, you have 5 years no claims 50% discount $500 premium on $1,000 base, you sell car and have no insurance for 1 year, you keep 50% discount if you buy new car within 2 years, paying $500 for new car, but if you have no insurance for 3 years, bonus expires and you lose 50% discount, paying $1,000 instead of $500, losing $500 saving per year. So you lose no-claims bonus without insurance if you have no insurance for more than 2 years, with some allowing 3 years, after which bonus expires and you start at 0%, so if you plan to have no insurance less than 2 years, bonus kept, if more than 2 years, you lose bonus and pay full premium $800 to $1,500 versus $400 to $600 with 50% to 60% discount.
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