How do I get a no claims discount on my home insurance?
Key takeaways
To qualify, you’ll need to have not made an insurance claim for at least a year
You can usually transfer your no claims streak when you switch home insurers
It can be cheaper to pay for lower-cost issues yourself rather than claiming on insurance
How do I get a no claims discount on my home insurance?
You’ll generally qualify for a no claims discount on your home insurance policy once you’ve gone 12 months without making a claim.
Specifics can vary between insurers, but usually a no claims discount gets bigger each year for up to five years, after which the discount amount stays the same.
🚩 Not all home insurers offer no claims discounts. Check your policy documents.
How much will I save with a no claims discount?
It depends on the insurer. Not all providers offer no claims discounts. For those that do, amounts of between 5-20% are common. You generally qualify for bigger discounts if you have gone several years without a claim.
Can I keep my no claims discount if I switch insurers?
Yes, you can usually transfer your no claims 'streak' to a new policy or provider.
If you had no claims for the last five years while you've been with Insurer A and you switch to Insurer B, they should offer you the same no claims discount you would have received if you'd been with Insurer B all along.
However, you’ll need to be with the same insurer for at least a year to 'bank' a year of no claims. If you switch mid-policy, you won't be able to carry that year's no claims bonus across.
🚩 If you don't have home insurance for a period of time (often two years), your no-claims bonus will reset to zero.
Does the no claims discount apply to both contents and buildings insurance policies?
Yes, many insurers offer no claims discounts for both contents and buildings insurance.
Buildings insurance covers the structure of your home, including walls, roofs, and floors. Contents insurance, on the other hand, protects personal belongings within the home, such as furniture, gadgets, and clothing.
Will claiming on my contents insurance policy affect my buildings insurance no claims discount?
No, generally you should be able to claim on your contents or buildings insurance policy with it affecting the other policy’s no claims discount.
However, you should check with your provider to be sure before making a claim.
When shouldn't I claim on my home insurance?
Insurers incentivise customers to not claim on home insurance. If you make a claim:
You must pay an excess, or contribution towards the cost
You will sacrifice your no claims discount
Your premiums are likely to go up when you renew your policy
For some issues it can therefore work out cheaper to not claim on your home insurance and just pay out of pocket to fix the problem.
As an example, here is how a £500 content claim and loss of a 5-year no claims discount would impact policy price for a couple living in London:
No home insurance claims
With a home insurance claim
How can I get cheaper home insurance?
If you're looking to save on home insurance, comparing quotes is the best way to see what options are out there. MoneySuperMarket can do the hard work for you, showing you prices from up to 86
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
Beth Leslie
Senior Insurance Content Editor
Beth is an experienced writer and editor who specialises in financial and economic content. She is currently the Senior Insurance Content Editor for MoneySuperMarket. Beth is passionate about making...
