How does no-claims bonus (NCB) work for commercial vehicles?

No-claims bonus (NCB) operates distinctly for commercial vehicles when each vehicle is treated individually. This means that each vehicle within a commercial fleet can accumulate its own NCB based on its individual claims history, rather than pooling NCBs among all vehicles in the fleet.

This individual approach to NCB allows for more tailored premium calculations, rewarding the operational performance of each commercial vehicle separately. If a specific vehicle has not had any claims during the policy period, it will benefit from a bonus that can reduce the premium for that vehicle when renewing or taking out a new policy.

The option that suggests all vehicles in a fleet share the same NCB would not reflect the typical operations within commercial insurance, where insurers recognize that each vehicle's claims history can vary significantly. Furthermore, the assertion that NCB cannot be applied to commercial vehicles is incorrect, as many insurers do extend this benefit to commercial policies. Lastly, while the overall driving history of a policyholder can influence premium rates, it does not directly determine NCB for each vehicle in a commercial setting.

Thus, the understanding that each vehicle can earn its own NCB illustrates the system's flexibility and fairness, aligning with the varying risk profiles of individual vehicles.