Your no-claims discount tool
Key takeaways
If you go for a year or more without claiming on your car insurance, your insurer may give you a discount on your premium, known as a no-claims bonus (NCB) or no-claims discount (NCD)
If you’re switching providers you should be able to transfer your discount, but not all providers will cover every year you’ve accrued - use our tool to work out how many years will apply
Some insurers offer NCD protection, allowing you to keep your discount even after a claim, though it may come at an extra cost
How many no-claims discount years will my new insurer honour?
Car insurance providers typically limit the number of claim-free years that they use to calculate your premium reduction (known as a no-claims discount or no-claims bonus).
Not all providers have the same cap, so use our car insurance no-claims discount tool to work out how many of the years you've built up will be recognised by your new insurer. Simply choose your new provider from the list below to find out.
How many no-claims discount years will my new insurer honour?
Work out how many of the years you've built up will be recognised
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Maximum number of NCD years
With most insurers, the size of discount you can achieve increases until you have built up five NCD years, at which point the maximum discount percentage is achieved. Despite this, some companies continue to recognise if you go further years without making a claim - but they don't increase the size of your discount (or at least not by much).
However, it can still be helpful. If your insurance company recognises up to, say, nine years of claims-free driving and you have an accident, you might lose two years and drop back to seven. As that's still higher than five, making a claim would not jeopardise your discount.
Other companies will always drop you back to three years after an accident, regardless of your number of years claims-free.
Maximum No Claims Discount
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%.
Does it have an Accelerated Bonus Scheme?
Some insurance companies offer drivers with no NCD an accelerated bonus scheme, which awards a year's NCD after 10 months claims-free driving.
After 10 months, you can either renew with the same firm, or move to another firm with the one-year bonus intact.
Maximum number of NCD years
Typically, the maximum number of NCD years which insurers use to calculate your discount is five to nine years. Any additional claim-free years will not increase your discount.
Maximum no-claims discount
The amount of discount earned increases with each consecutive year of claim-free driving.
So, after one year you might get 30%, with the percentage increasing each year until you reach the insurance provider’s maximum discount.
Some providers give you as much as 60% for five claim-free years, according to the ABI.
Does it have an accelerated bonus scheme?
Some insurance companies offer drivers with no NCD an accelerated bonus scheme, which awards a year's NCD after 10 months claims-free driving.
After 10 months, you can either renew your insurance premium with the same provider, or move to another insurer. But you need to check that your new insurer will honour your no-claims bonus.
How can I save money on my car insurance?
Car insurance is a hefty expense, but there's a good chance you can save money by shopping around rather than staying with the same insurance provider at renewal.
How does a no-claims discount work?
When you go for at least a year without making a claim on your car insurance policy, your insurer will offer you a discount on your premiums the next time you renew as a reward. However, there are no set rules on how much insurers will offer as a discount so it’s always good to compare your options.
How much can I save on my car insurance with a no-claims discount?
Insurers set their own rules when it comes to the minimum and maximum discounts given but they usually range from between 5% and 60%.
According to car insurance quote data from MoneySuperMarket, drivers with a one year discount paid on average £940.50
To find out how much you could potentially save you can contact an insurer and check what limits it sets or calculate your no-claims discount with our free tool.
Can I transfer my no-claims bonus?
Yes, if you’re moving to a new car insurance provider and you’ve accrued a no-claims discount with your current insurer, you may be able to transfer this across. Most insurers will allow you to transfer your bonus, but how many years they’ll honour may vary.
You’ll need to contact your old insurer to get proof of your discount, usually via a letter for your new insurer or you may be able to use your renewal notice.
How long does a no-claims bonus last?
A no-claims bonus usually lasts for two years after you cancel a car insurance policy. Some car insurance providers will accept three years but this may only be if they were your last insurer.
What happens to my no-claims discount if I have an accident?
If the accident was caused by another driver and your insurer can recover the cost then you shouldn’t lose your no-claims discount - even if they were an uninsured driver.
However, if you have an at-fault accident your no-claims discount will be affected, unless you have no-claims discount protection.
Insurers will often ‘step-back’ your no-claims bonus. The Financial Ombudsman Service (FOS) gives this example: You may have had nine years no-claims, but your new insurer’s maximum is four years. You also have a claim. If their process is to step back to two years, they would only provide two years’ no-claims bonus.
FOS would normally consider this fair as long as your insurer made this clear when you took the policy out.
If you make multiple at-fault claims in a year your no-claims bonus might be stepped back to nil at renewal.
How do I protect my no-claims discount?
You can pay a small extra fee on top of your premiums to protect your no-claims discount, which means you won’t lose it - or all of it - if you need to make a claim. Depending on the insurer, you might be able to make up to two claims within a certain number of years without losing your entire discount.
💡 Top tip: Remember that this doesn’t mean you are protected from your car insurance premium increasing, it just protects your bonus.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
