...and how does it work?
What is a no claim discount?
Published 18 February 2025
To put it simply, a no claim discount (NCD) is when your insurer reduces the cost of your car insurance because you haven’t made any motoring claims.
Your discount will start when you’ve had one year with no claims, and it’ll build up with every year you’ve been driving without making a claim, meaning the more years you have claim-free, the more discount you’ll get on your car insurance.
Does a no claim discount (NCD) save money?
After just one year without making a claim, you’ll see a discount in the cost of your car insurance for the following year. And, as the years of no claims rack up, so will the amount of discount you receive.
Does a no claim discount expire?
If you take a break from driving, you might cancel your insurance for a while. But as long as you reinstate your car insurance within two years, your no claim discount will seamlessly resume, so you can carry on building it up.
Can I transfer my no claim discount (NCD) to another insurer?
Yes, if you move insurers, you will take your discount with you – you’ll just need to provide some proof when you set up your policy.
Do all claims affect a no claim discount?
No, if you make a claim for an incident which was not your fault and we can recover the costs for any repairs or replacement from the liable motorist’s insurer, your NCD would not be affected. This also applies if the driver at fault was uninsured, as long as you're able to give us details of the uninsured vehicle.
You’ll also keep your NCD for any windscreen damage, breakdown call outs or use of motor legal expenses.
What happens to my no claim discount (NCD) if I make a claim?
If you make a claim, and the accident was your fault, you'll lose some or all of your discount. For example, if you have six years of no claim discount and you make a claim for an incident that was your fault, we'll apply a discount equivalent to three years of no claims, rather than six years at renewal.
So, the safer you drive, the less you pay… win win, right?
