How to prove your no claims discount

If you decide to change insurance provider, you’ll want to get the best deal and that means being able to prove your no claims discount (NCD), otherwise known as a no claims bonus (NCB). So, how do no claims discounts work, how can you prove your no claims bonus to a new insurance provider, and how much money could you save? Here we answer all your questions about NCB.

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How does a no claims bonus work?

A no claims bonus is a reward – in the form of a discount on your insurance premium – that you can receive for not making any claims against your policy. In other words, it’s a great way for safe drivers to save money on the cost of their car insurance.

Why do insurers provide a no claims discount?

Before giving you a quote, an insurer will determine your risk profile by taking into account many factors such as your age, how long you’ve been driving and what kind of car you drive.

The more years of no claims bonus you accrue, the less risk you pose to the insurance provider.

What’s the difference between no claims bonus and no claims discount?

No claims bonus refers to the reward scheme in general and the years you have accrued, whereas the discount is the actual reduction applied to your premium. Although there is technically a distinction, you’ll find that the terms are often used synonymously.

Can I transfer my no claims discount to a new insurance company?

Your bonus can be carried to a new insurer, but bear in mind that the discount offered may differ between companies and you will have to provide evidence of your years of claim free driving.

Some insurance policies that do not allow NCD to be accrued will offer an equivalent discount. For example, Adrian Flux offers a discount equivalent to a no claims bonus on its classic car policies.

How much money can I save?

The discount offered will differ depending on your insurance company and the number of claim-free years you’ve accumulated. According to The Association of British Insurers (ABI), a NCD can be as much as 30% off your premium after one year, and 60% after five consecutive claim free years.

What is the maximum no claims discount?

Most insurers only take five years of no-claims into account when working out your discount. After this point, you’ll still save money, but the discount will remain much the same each year.

How long will my no claims history last?

Any no claims bonus you accrue will usually be wiped after two years of you not driving, although some schemes will accept your NCD after three years or more. At Adrian Flux, we offer expired NCB insurance. This means we can often accept an out-of-date no claims bonus entitlement.

Your no claims history will be wiped or reduced in the event of an accident where you are at fault. In most cases, your NCD will be reduced by two years. So, if you have three years’ NCD accrued, this will be reduced to one year.

Once you reach six or more years’ NCD, your history will be reduced to three years. However, there is a way to protect your precious no claims bonus – it’s simply called no claims discount protection.

What is no claims discount protection?

No claims discount protection is a feature that can be added to your insurance policy, usually for an additional cost. It allows you to keep your bonus even if you make a claim where you are at fault.

If you have managed to build up multiple years of no claims, then you should consider getting NCD protection. That way, if the worst happens, and you make a mistake driving, you won’t need to start your bonus again from 0 years. It is worth noting that this protection doesn’t necessarily prevent your premium from going up, but you’ll still be in a better position with your NCD intact.

We’re often able to offer protected no claims bonus as a policy extra if required – let us know if this is something you’d be interested in. This protects your NCB even in the event you need to make a claim.

Can I build a no claims bonus as a named driver on someone else’s policy?

It depends on the insurer. If you’re a named driver on someone else’s policy, you may be able to keep a no claims bonus, but it depends on the insurance provider and the terms of the policy.

If you aren’t accruing an NCD, this isn’t to say you can’t be rewarded for the driving experience you have built up while covered on someone else’s policy – if this is your situation, it’s best to speak to us directly and we can explain your options.

Firstly, you’ll need to make sure you have access to certain documents from your previous insurer.

What is an accepted form of proof of no claims?

There are three main forms of proof:

The renewal invite from your current or previous insurer will state the number of years’ NCB that you’ve earned.
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. You can request this by getting in touch with them.

The above documents should be dated within two years of your new policy’s start date. There is often a strict time frame in which you must get these to your new insurer once you take out a policy with them. This ranges from as little as seven days to 28 days from the start date.

Many insurance sites will give you the option to directly upload these documents online, or you can email or post them.

Will my new insurer contact my old insurer to check on my no claims discount?

In certain cases, your new insurer may require direct contact with your previous insurer to confirm your no claims discount. If you’re not sure, contact your insurer for guidance.

Does a non-fault claim affect my no claims discount?

If you find yourself in an accident where you’re not at fault and another party takes the blame, your no claims bonus will not be affected. However, you should still inform your insurance provider about the accident.

How could I lose my no claims discount?

You will lose your no claims discount in the event of a claim being made on your policy.

Is my no claims bonus the only way I can get cheaper insurance?

There are many ways to reduce the cost of your annual car insurance premium. Read our blog to learn more than 20 simple steps to reduce your car insurance and save money.

Where can I get the best no claims discount on my insurance?

With a specialist car insurance broker like Adrian Flux, we can walk you through this process in greater depth. You can also ask for policy features that match your needs and we will do our very best to find a company with a policy that offers exactly what you need. Call us on 0800 369 8590 or book a callback to get a fast, affordable quote.

Equally, if you think your no claims discount entitlement might have expired, it’s likely we can still help you with our expired NCB insurance.