Ex-company car insurance

Even if you’re a superb driver who never puts a foot wrong, some insurance providers won’t count your claim-free years as NCD (no-claims discount) if you’ve been driving a company car. Here’s how to make your driving history count.

Even if you’re a superb driver who never puts a foot wrong, some insurance providers won’t count your claim-free years as NCD (no-claims discount) if you’ve been driving a company car. Here’s how to make your driving history count.

Alex Hasty
Insurance and finance expert
minute read
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Last Updated 21 MARCH 2022

Car insurance for ex-company car drivers 

When it comes to car insurance, those who’ve been driving company cars can be at a disadvantage. From an insurance provider’s perspective, if you’ve had use of a vehicle through your job you won’t have built up any personal no-claims discount. 

This can result in expensive quotes when you eventually come to insure your own car again. But don’t worry, there may still be ways to keep the cost down, especially if you have a long driving history and haven’t made any recent claims.

See if your insurance provider will accept claim-free driving

If you were the only person using your company car, some insurance providers will offer you a discount for your years of claim-free driving. It’s not strictly a no-claims discount but it could lead to savings. 

This option may be open to you if you had your ‘own’ company car, which you used outside of work. If you used a shared pool of cars for work-related travel, you probably won’t be eligible. 

To prove claim-free driving, the insurance provider who covered your company car will need to confirm: 

  • That you had sole use of the car for domestic and pleasure, as well as business and commuting.
  • The number of years of claim-free driving you’ve had.

Some providers will also want to know the date you stopped using your company car (it needs to be fairly recently), and that you’re the new car’s registered keeper and owner.

Top tip

An insurance provider who’s willing to accept your past NCD, might not necessarily offer the cheapest policy or the level of cover you need. That’s why it’s a good idea to shop around and compare quotes from a range of providers.

Could you have valid NCD from old policies?

If you’ve had a break in your no-claims bonus of two years or less, many providers will still consider it valid. With a longer gap, your NCD won’t count in your favour because it was too long ago. 

The time limit varies between providers, with some allowing lengthier gaps of up to three years. So, it’s worth checking with a potential insurance provider – you might be pleasantly surprised. 

Bear in mind that NCD is always counted in complete years – from when you took out an annual policy to when it was due for renewal. So, if you had a policy for six months then cancelled it to take up a company car, the time you were privately covered won’t count towards your NCD – even if you didn’t claim.

Frequently asked questions

Do I get car insurance from my employer if I use a company car?

Many company car schemes also offer the additional benefit of their own company car insurance. Just bear in mind that this might not cover you to use the car for personal use. Be sure to check with your employer, because the last thing you want is to be driving around in a company car if you’re not properly insured. 

If, on the other hand, you decide to opt out of the company car insurance scheme in return for a ‘car allowance’, you’ll need to insure the car in your own name. This means that you should be able to keep your NCD.

Do claims on a company car insurance policy affect my personal no-claims discount?

A claim made on your company car insurance policy shouldn’t affect your personal no-claims bonus. However, you should report any claims to your own insurance provider – in which case, they may decide to increase your premium.

Will previous claims or convictions affect my car insurance?

Any record of previous claims or driving convictions while you were driving a company car could affect how much you’ll pay for car insurance, even if it was insured through your employer. You might find your choices are more limited and your car insurance will be more expensive.

How can I get cheaper ex-company car insurance?

A no-claims bonus (or lack of one) isn’t the only thing that can affect the cost of your car insurance. Your age, job, address and type of car can also have an impact on the cost of your premium. 

As an ex-company car driver, there are ways to help cut the cost of your car insurance. Think about: 

  • Choosing a car in a lower insurance group – it may not have the powerful engine you’re used to, but it could mean paying less for your car insurance
  • Cutting down on your annual mileage – the less time you spend on the road, the lower your risk of being involved in an accident, which could mean a lower premium
  • Bumping up your excess – paying more voluntary excess could lead to cheaper premiums. Just make sure you can afford to pay the excess if you need to make a claim
  • Paying annually – monthly repayments often include interest, so you’ll typically pay more over a 12-month period than paying it all upfront in one go. 

Read about more money saving tips when it comes to paying car insurance.

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