Looking for a better deal on your insurance? Get a quote
Become a registered garage - Join us



No Claims Discounts: The Basics

No Claims Discounts: The Basics

If you have been involved in a road traffic collision (RTC) that might be wholly or partly your fault, claiming on insurance could put your no claims discount at risk. Here’s everything you need to know about your no claims bonus, and how you can protect it.

The no claims bonus or no claims discount is a reward given by insurance providers to drivers who haven’t made any claims against their insurance policy for a specified period of time. No claims bonuses can mean a significantly lower insurance premium, because insurers see these drivers at lower risk of being involved in an accident.

Earning your no claims bonus

For every year that you go without making an insurance claim, you build up your no claims bonus. So, once you have gone for a whole year without making a claim, your insurance premium might show 1 year NCD. Most insurance offer a no claims discount at greater rates for every year that you have gone without an accident. Depending on the insurer, this discount may go up to five or even fifteen years.

How much is the no claims discount?

The amount that you save with your no claims discount will depend on your insurer and the number of years that you have gone without claiming. After one year, the NCB can be anything from 10-30% - by 5 years, this goes up to around 50%, and for ten or more years, the discount could be as much as 75%.

Protected no claims discount

Some insurers let you protect your no claims discount by paying a little bit more on your premium. This protection allows you to make a set number of claims (usually one or two) without losing the discount. However, your monthly payments may still go up each month as although your discount will still apply, your overall premium may increase as you may be considered at being at higher risk of making claims in the future. If you have been in an incident, it may be worth speaking to your local garage to find out the cost of repairs as it may be cheaper to pay for it yourself than to go through insurance.

Transferring your discount

No claims discounts are generally tied to the policyholder rather than the specific insurer or vehicle. This means that it is possible to shop around for good deals and take your NCD with you. To transfer your discount to a new insurer, you will have to prove your claims history.

Named drivers

It isn’t usually possible for named drivers to accumulate a no claims bonus. However, some insurers offer a scheme where named drivers can also build up the discount.

If you have been involved in an incident that is likely to increase your premium, there are several ways that you can prove your driving capability to your insurer. These include taking additional driving lessons or installing a black box in your car. For more advice about keeping you, your vehicle, and other road users safe, follow Trust A Garage on Facebook or X.

Related

Was this useful?