Back to blog

What Is A No Claims Discount and How Does It Work?

3 min read

What is a No Claims Discount and how does it work? 

We all want to get the best price for our car insurance. That’s where a No Claims Discount comes in.

🤔 But what is it exactly? And how does it work?

What is a No Claims Discount?

It’s a system that rewards drivers based on the number of years they’ve been driving without making a claim. The more years you’ve driven in a row without making a claim, the bigger your discount. UK insurance companies call this system a No Claims Discount (NCD) or a No Claims Bonus (NCB). Lots of countries have similar systems that use different names. And some countries don’t use this type of system at all.

I’m new to the UK, can I get a No Claims Discount? 

Most insurers won’t give you a No Claims Discount if you’re new to the UK. Most insurers only count your driving history within the UK. And that can mean super high prices. 
But we look at ALL your years of claim-free driving from any country. And we could save you up to 45% on your car insurance.

How can I prove my claim-free driving?

We can give you a discount for your claim-free driving history, no matter which country you drove in before. We just need official proof of your No Claims Discount or claim-free driving from your previous insurer.

After you pay, we'll ask you to upload that proof on the app. This can be a renewal notice, a letter, or an official certificate that includes the following: 

  • Your name
  • Your claim-free driving score/ratio (this works differently in every country)
  • Policy expiry date
  • Claim details (if you have any)
  • Contact details of your previous insurer

And if it’s not in English, don’t worry! You don’t need to get it translated. Just send the document over in its original language, and we’ll sort the rest. The same goes for any documents you use to get car insurance with us. 

Find out what documents you need to get UK car insurance here

What if I can’t get hold of my last insurer?

Don't give up yet! To honour the claim-free driving discount, we need to get proof from an official insurer. If you need more time, please let us know by reaching out to us on Live Chat.

What if I didn’t have car insurance before moving here?

In some countries, it’s not a legal requirement to have car insurance. So you may not have an insurance company that can prove your driving record. ‍If that’s the case, we won’t be able to honour your discount and we may need to increase your price. 

You will still get a discount based on your years of driving experience, though. And if you drive with us for a year in the UK without making a claim, we’ll boost your UK claim-free discount next year to give you a better price. 

What is a Protected No Claims Discount?

Lots of insurance companies (including us) offer a thing called No Claims Discount Protection or Protected No Claims Discount. That means you can keep your discount, even if you make a claim. We offer No Claims Discount Protection as an optional extra which lets you make up to 2 claims a year without affecting your discount. 

I stopped driving for a few years, does that impact my No Claims Discount? 

If you haven’t had car insurance for 3 years or more, we won’t be able to give you a discount. That’s because a claim-free driving record only lasts for a few years when you’re not actively driving. You’ll start building it again when you start driving. 

Got more questions about how we reward claim-free driving from any country? You can find answers here. 

Or moved to the UK and want to save money on your car insurance? Get a quote from us here