How Does Ncd 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 you lose all your no claims after an accident?

If your insurance provider considers the industry standard of five years to be the maximum NCD, you'll be left with three years' NCD. And if you make a second claim, you'll lose it all. If the accident wasn't your fault, your insurance provider will try to recover the costs from the driver who was at fault.

How does protected NCD work?

You can choose to pay to protect your discount - this is known as a protected no claims discount - and means that you can keep your discount, even in the event of making a claim. ... Though the new policy and NCD features may not be identical, any claim history should still lead to a discount with your new insurer.