Private Hire Insurance. How Does No Claims Discount Work?

Written by Zego

Published on

  • No Claims Discount can lower the price of your Private Hire Insurance
  • Zego offers the maximum discount with 5 years NCD
  • Zego’s NCD Protection helps you keep your discount even if you make a claim

By law, UK taxi drivers must have Private Hire insurance that covers them to carry passengers for payment. When buying this type of policy, or switching to a different insurer, drivers will be asked about the No Claims Discount (NCD) they’ve built up over time. This magic number can make a big difference to the price they pay, possibly saving them £hundreds every year. But what exactly is NCD and how does it work? Here’s all you need to know.

What is No Claims Discount?

No Claims Discount (sometimes called No Claims Bonus) is an incentive that rewards drivers who can prove they haven’t had a claim against their insurance policy in the past few years. The longer they go without making a claim, the bigger the discount they get. Savings may be worth £hundreds every year.

Private hire drivers will have NCD that is specific to their work as well as their personal NCD. Insurers will usually ask how many years of taxi NCD the driver has built up, which is accrued separately from their personal No Claims Discount.

How does my No Claims Discount affect the price of my insurance?

The amount of discount you get on your premium depends on how many years NCD you are entitled to. More years without a claim against your PH insurance policy translates into a higher discount when you switch or renew.

The actual discount you get will often vary from one insurer to another and sometimes between different insurance products. As an example, when drivers buy annual policies, Zego gives the maximum discount for PH drivers who can prove they’ve gone 5 years without making a claim.

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. This means you will no longer get a reduced insurance premium with your proof of No Claims Discount and you’ll have to start again from zero years NCD.

You can reduce the financial impact that a claim has on the cost of your cover by purchasing a supplement when you first buy your policy. This is called No Claims Discount Protection and it may allow you to keep some, or all, of your NCD entitlement, even after you or a third party makes one claim on your policy.

Can I protect my No Claims Discount with Zego?

Yes. Depending on the policy you buy, Zego offers you the option of protecting the valuable No Claims Discount you’ve built up over years. Among other additional cover options, private hire drivers can protect up to 5 years NCD and still make one claim where they are at fault.

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?

Yes. Although NCD proof is typically issued upon the expiry of an annual policy, Zego also lets you earn one year of NCD if you take out 12 consecutive 30-day policies.

How can I make the most of my NCD?

Put your hard earned NCD to work when you discover the best Private Hire insurance from Zego. Buy 30 days or annual policies. Or choose Zego Sense, the Telematics policy that rewards good drivers with lower prices – the safer you drive, the more you save.

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