Our guide to No Claims Discount
Written by Benedict Harrison
- What does No Claims Discount (NCD) mean?
- How does it affect the price of your insurance policy?
- How can you get proof of NCD from your insurer?
Welcome to Zego’s guide to No Claims Discount (NCD). In this post, we’ll cover everything you need to know about NCD, including what it means for your insurance policy and how you can get proof from your insurer.
What is No Claims Discount?
No Claims Discount (sometimes called No Claims Bonus or NCD) rewards drivers who haven’t had a claim against their insurance policy for a certain period of time. If you can prove that you are entitled to a discount as there have been no claims against your previous insurance policy, you may get a reduction on the cost of your premium when you move to Zego.
If you work as a taxi or private hire driver, it’s worth noting that you will have NCD that is specific to your work as well as your personal NCD. You may be asked how many years of taxi NCD you have, which you acquire separately from your personal NCD.
How much does my No Claims Discount affect the price of my insurance?
The amount of discount you get on your premium depends on a number of factors. Firstly, your discount will change depending on how many years NCD you are entitled to. The more years you go without a claim being made on your policy, the more years of NCD you will have. And the more years of NCD you have, the greater your discount is likely to be. The discount will also vary from insurer to insurer and often between different insurance products too.
Your discount will be factored into what is called the underwriting process, where the cost of your cover is determined.
What happens to my No Claims Discount if I make a claim on my policy?
If you or a third party makes a claim on your insurance policy, you are likely to lose your NCD entitlement. You will no longer be able to get a reduced insurance premium from your proof of NCD and you will have to start again from 0 years NCD.
It’s worth noting that Zego offers you the chance to protect your NCD so that you can try to lessen the impact an accident has on the cost of your cover. By protecting your NCD, you may be able to keep some or all of your entitlement, even after you or a third party makes 1 claim on your policy.
Can I protect my No Claims discount with Zego?
Depending on your policy, you may be able to protect your NCD with Zego. Among other additional cover options, private hire drivers can protect themselves for up to 5 years NCD earned for up to 1 fault claim.
How can I get proof of my No Claims Discount?
You can get proof of your NCD from your previous insurer. Different insurers may send it out to you in different ways.
They may include your proof of No Claims Discount in your renewal or cancellation letter, send a specific proof of No Claims Discount letter or only send proof if you request it.
Can I get proof of No Claims Discount from 30-day cover with Zego?
NCD proof is typically issued upon the expiry of an annual policy. However, with Zego, you can gain a year of NCD if you take out 12 consecutive 30-day policies as well.
Remember - it’s always important to notify your insurer if you are involved in an incident, even if it may impact upon your NCD. If you have any questions about your NCD, please get in touch with our friendly team. We’re available 7 days a week and we’ll be happy to help.