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Still confused? |
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General Car Insurance |
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No Claims Discount (NCD) or No Claims Bonus (NCB) Your No Claims Discount is the best single way to reduce your insurance premium. This is the number of years you have been driving without an accident and rewards you with a discounted premium for safe driving. For each year you remain claim free you receive a percentage discount from your gross premium. The following would be a typical scale of discount:
1 Year – 30% 2 Years – 40% 3 Years – 50% 4 Years – 60%
As you can see, this translates to a significant saving, so you should guard your No Claims Discount Jealously. But it is important to remember that NCD is not the same as No Blame Discount, as a driver that is unlucky by being hit while parked can cost the same as someone who is careless.
Most insurers will allow you to protect your NCD once you have reached the full entitlement for an additional premium. Usually this will allow you to make two ‘at fault’ claims within a five-year period. It is also worth knowing that in the event of a claim where you are not to blame and the insurers are unable to recover their cost from the other party’s insurers, that your NCD will be reduced, usually by 2 years.
Your no claims discount for most insures is only applicable to the main policyholder. This disadvantages any additional named driver on an insurance policy, as they do not accrue a no claims bonus. However, some insurers have started recognising claims free driving history for named drivers, so check to see if they do.
Some insurers will also allow a Matched NCD or Mirrored NCD. This occurs where your bonus built on one policy will be matched if you wish to purchase a second vehicle. However, you may find a more suitable and cheaper policy if you have a classic car or multiple vehicles and wish to consider a family fleet or multi-car insurance policy.
If you’re a motorbike rider looking to hang up your helmet for the comfort of a car or have built up company car bonus, many insurance companies will now reward you with cheaper insurance premiums if you have a clean record.
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The Insurance Boffin E-mail: info@insuranceboffin.com Disclaimer: Any information, advert or link contained on this site does not amount to advice, suggestion or a recommendation in any manner or form. |
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