What is a no claims discount and how do I earn it?
You get a no claims discount if you drive without making a claim on your insurance. For every blemish free year of driving you earn one year’s no claims discount (NCD or sometimes known as a no claims bonus). Every year you have of no claims means a potential reduction in your car insurance premium. So, the more years you have of no claims, the greater the discount on your premium.
Based on this, it takes a year to build your no claims discount. You can only earn any discount in each full year of insurance so if you’ve switched policy without completing a full year of cover you won’t earn any NCD for that year.
You can usually only earn a no claims discount if you’re the main driver or policyholder. Some insurers will consider giving named drivers a discount when they come to take out their own policy, so it’s always worth mentioning if you’ve been on a policy with a good no claims history – it could save you a few bob.