No Claims Discount

A no claims discount is a reduction on your car insurance premium, granted to you by your insurance provider for not making any claims on your policy. Otherwise known as a no claims bonus, it is usually increased every year that you do not make a claim on your insurance, but if you do make a claim, then it can reduce the discount you receive on your next renewal quote or it will be lost completely. Not all of the discount will necessarily be taken away if the accident is not your fault, you have 5 years no claims, and it is the first accident. The maximum no claims discount is usually 5 years, after which the premium will stop being reduced further, but some insurance companies offer a 6 to 8 years no claims discount. Other facts about no claims discounts include:

No claims discounts up to 75% are available
You can protect your no claims bonus for an additional charge
Some companies allow you to accrue a no claims bonus in 10 months instead on 12
You can take your no claims bonus with you

If you buy a second car, the no claims discount which you have on your first car does not always apply to both vehicles. However, there are some insurers that will mirror your existing policy and honour your no claims discount on the new car too. A claim is still a claim, so even if it wasn't your fault – for example if your car is stolen – your no claims discount will be affected if your insurance company cannot claim the costs back from a third party.

To make sure you find the right car insurance for you that offers you the maximum no claims discount for your individual driving history, use our free online service which compares the market for you to bring you the cover you need and the best deals.