What Is A No Claims Discount?

A no claim discount is a reduction in the cost of your car insurance if you don’t make a claim You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don’t make a claim for five years, you’ll have five years of no claim discount applied to the basic cost of your car insurance.

Is it worth getting no claims discount?

A no claims discount (NCD) can play an important part in lowering your annual insurance premium If you do not make a claim on your car insurance, then your insurer is not required to pay out. By default, this implies you are a safer driver and therefore cheaper to cover.

How do I get my no claims discount?

Some new providers will ask your old provider for the proof of no-claims discount themselves – they’ll let you know if they do. If not, you may find the details on your renewal letter or on the cancellation notice you’ll receive if you’re switching. If not, contact your provider and ask them to send you the proof.

What counts as no claims discount proof?

There are three main forms of proof: The renewal invite from your current or previous insurer will state the number of years you’ve enjoyed a no claims bonus. A cancellation letter from your previous insurer, as long as it states your no claim bonus. A letter from your previous insurer confirming your no claims bonus.

What is my no claim rating?

Each year you hold car insurance and don’t make a claim, your no claims discount rating goes up, making your car insurance premiums cheaper. After five years, you usually reach Rating 1, which is the maximum ncd discount available. In some insurers this might also be called Rating 5.

How long do no claims last?

That depends on your insurance provider and how long it’s been since you last had cover. Many insurance providers will say a no-claims discount is invalid if there’s a break in your car insurance of two years or more But other providers may go to three years.

How many years is full no claims?

Typically, a no claims bonus is valid for two years This means If you haven’t had car insurance for two or more years, perhaps because you sold your vehicle, your no claims discount will expire. The outcome is you’ll need to build up a new discount from scratch when you next take out a policy.

How does no claims work?

A no claim discount is a reduction in the cost of your car insurance if you don’t make a claim You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don’t make a claim for five years, you’ll have five years of no claim discount applied to the basic cost of your car insurance.

Do I lose my no claims if someone hits me?

A no claims bonus (NCB), or more correctly a no claims discount, is awarded if you don’t claim in the latest policy year. Even if you have an accident that wasn’t your fault – you’re hit by an uninsured driver, or your car gets stolen – you could lose your NCB , and your premium could even go up at renewal.

Is 9 years the maximum no claims bonus?

Our maximum No Claims Bonus (also known as No Claims Discount) level is 9 years , so it will automatically be displayed as such on your renewal notice.

Does 1 year no claims make a difference?

The amount of discount earned increases with each year of claim-free driving. So after one year you might get 30% , with the percentage increasing each year until you get 70% NCD after five years. Most firms offer a maximum NCD of 70%, although some offer 75% or 80%.

What does 65% No Claim Bonus mean?

Motor or Caravan 65% Claim Free Privilege 1 is earned after you’ve had a 60% No Claim Bonus 1 for one claim free period 65% Claim Free Privilege Plus 1 is earned after you’ve had 65% Claim Free Privilege 1 for one claim free period. This includes free No Claim Bonus Protection.

Do named drivers get no claims?

Can named drivers build up their own NCD? No, unfortunately named drivers can’t build up their own no claim discount (NCD) You can only earn NCD if you’re the policyholder or the NCD holder on a multi car policy.

Do I lose my no claims bonus if I am a named driver?

No-claims bonuses only apply to the main driver They’re usually the owner of the car, or its ‘registered keeper’, but not always. It’s the main driver who gets the reward for no claims, even if there are other named drivers on the policy or the car is owned by someone else.

Do I keep my no claims bonus if I cancel my insurance?

While you’ll get some money back or avoid paying further instalments, which will be more than you’ll pay in cancellation charges, you’ll lose your no claims discount (NCD) for that year if you cancel early That said, any previous years NCD will remain.

Can I split my no claims between 2 cars?

But, you can request proof at any time and the insurer will supply it. Can I split my accumulated NCB across two cars? No. You can only use your exisiting NCB in one policy for one car, but you can build up a separate NCB in another car insurance policy for a second car.

Can I transfer my no claims bonus to my wife?

Yes, but this only applies to couples who are married or in a civil partnership it does not apply to co-habiting couples It can only be switched once so cannot be switched back.

Can 2 people insure the same car?

You and your partner can both take out separate policies for the same car. Car insurance policies are for both the vehicle and the driver, so it’s perfectly fine, legal and common for two people to be insured on the same vehicle under separate policies There are a few reasons why you might consider doing this.