No-claims discount
A no-claims discount reduces your insurance premium for each year you go without making a claim.
Also known as: no claims bonus, NCD, no-claims bonus
It is most commonly used in car insurance, where a number of claim-free years can bring a large saving. Some insurers let you pay extra to protect the discount, but this usually only limits the effect of a claim and does not stop premiums rising.
If you change insurer, ask for proof of your discount. It normally needs to be recent to be accepted.
Check the policy documents and the key facts before you buy, and compare the cover as well as the price.
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.