No claim discount explained

So what exactly is a no claim discount? (Also known as a no claim bonus, an NCB or NCD.) Simply put, it’s the discount you can get off your car insurance premium based on your claims history.

Most insurers in the UK provide a no claim discount. And usually, the longer you go without making a claim, the higher the no claim discount you can earn. So you might start, for example, at 30% discount for one claim free year and earn a greater discount for every following claim-free year, up to a set limit. There’s no set scale, but a limit of between 60% and 70% is typical. With esure, however, you can earn up to a remarkable 75%! If you have 5 claim free years you will receive an instant 70% no claim discount and a further 1% for every year that you stay with esure without making a claim, up to a maximum of 75%.

When is your no claim discount affected?

Generally speaking, if you are involved in an incident that isn’t your fault, your no claim discount will not be affected, but being claim-free isn’t always the same as being fault free. Sometimes drivers have to make claims even when they are not at fault - for example if your vehicle is stolen or damaged by vandalism.

In most cases, claiming for a broken window or windscreen will not affect your no claim discount. But if you have to make a larger claim, even for an accident or incident that was not your fault, you could stand to lose part or all of your no claim discount. Some companies, like esure, will not reduce your no claim discount if the damage was caused by vandalism claims (as long as the incident has been reported to the police and has a crime number) and for claims caused by uninsured drivers (as long as those responsible are identified). As for other claims, esure operates a ‘step-back’ policy that reduces the no claim discount (e.g. From 60% to 40%) meaning it will not usually be wiped it out completely.

Can you protect your no claim discount?

It’s often possible to protect your no claim discount - and many esure customers choose to do this: with esure, you may be able to pay a small additional premium to ensure that your no claim discount remains unaffected for the life of your policy, subject to continuing eligibility and your policy remaining in force.

Protecting your no claim discount does not prevent your premium from rising - if you make a claim, your premium may still rise because your claims history has been affected - but the NCD can be a significant discount and is worth protecting. Even if you have a good driving record and don’t expect to make a claim, NCD protection is well worth considering. It may cost a bit more, but if you do have an accident and have to make a claim, you could lose a discount worth a lot more than the small extra cost of protection.

Can you take it with you?

Oh yes. When you change your car insurance provider, you can usually take your no claim discount with you. At esure, we welcome careful drivers with 1 or more years no claim discount. You have to provide proof of your no claims record, but if you can’t find your renewal notice, just ask your previous insurer to provide confirmation.

What if you have two cars?

With two cars, you need to have two different no claim discounts, one for each car. It’s not possible to share your no claim discount between them.

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