If you make a claim on your insurance and your insurance provider pays out, then your no claims discount is typically reduced by two years. So, if you had eight years of NCD and made a claim, in theory you’d be left with six years NCD. However, this isn’t always the case. If your insurance provider considers the industry standard of five years to be the maximum NCD you can have, then you’ll be left with three years NCD if you make a claim (five years minus two years for making a claim, equals three years NCD). And if you make a second claim, you will lose all your NCD.
If the accident wasn’t your fault, your insurance provider will try to recover its costs from the driver who was at fault and your NCD should be unaffected.
If no one was to blame for the accident, insurance providers might split the cost of the claims and both drivers’ NCD could be affected. If your car is vandalised or damaged and the culprit can’t be caught, or your car is stolen, your insurance provider won’t be able to recoup its costs and your NCD may be affected.