No Claims Discount (NCD)
If you are currently looking to switch your insurer, then you will probably be aware of the term No Claims Bonus or Discount (NCD). These two terms are interchangeable and mean the same thing. First time drivers need to make themselves aware of the potential benefits and savings to be claimed by accumulating a maximum no claims discount.
You could save up to £518*
*51% of consumers could save £518.14 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next four cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2025 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.
Click on the ‘Get a Quote’ button above to compare no claims discount car insurance quotes from over 130 of the leading UK motor insurers, and obtain the most suitable fully featured cover and protection you require. The Quotezone click and compare service is entirely free to use. It is a totally independent and impartial insurance comparison site, already helping over 1 million drivers across the UK to get the best deal.
Top 6 FAQs on No Claims Discount for UK Car Insurance
1. What is a No Claims Discount (NCD)?
A No Claims Discount (also called a No Claims Bonus) is a reward on your car insurance premium for each year you go without making a claim. The longer you go claim-free, the larger the discount you receive on your renewal premium.
2. How does an NCD work?
Each claim-free year you complete builds part of your NCD. Insurers then reduce your next premium by a percentage based on the number of claim-free years you’ve accumulated. The exact amount and how insurers band years varies by provider.
3. Does my NCD expire if I stop insuring a car?
Yes — if you let too much time pass without a policy, your NCD can expire and you’ll start from zero again. Most insurers allow up to 2 years between policies before the discount is lost, but this can vary by company.
4. What claims affect my NCD?
Fault claims (where you are responsible) usually reduce or remove your NCD. Some non-fault claims (e.g., the other driver was at fault) often don’t affect your NCD if the insurer can recover costs. Minor windscreen or glass repairs may not affect your discount.
5. Can I transfer my NCD to a new insurer?
Yes — you can usually take your NCD with you if you switch insurers, provided you can prove your discount (e.g., with a letter from your previous provider showing years and policy dates).
6. Does a named driver earn their own NCD?
Some insurers allow named drivers to build their own NCD, but policies vary. If you’re switching to a policy where you’re the main driver, you may need your own proof of NCD to use it.
Competing motor insurers in the UK will offer substantial discounts for those policyholders with claims-free records. The actual level of discount varies according to the class of vehicle insured and driver profile. Motorists with over 4/5 years driving experience with no claims, can often claim a reduction of up-to 55-75% over the standard policy premium.
Compare a variety of different leading UK car insurers to ascertain who can deliver the best no claims bonus and provide the best value for money cover on the market. Drivers just starting out on their motoring journey can examine the deals from insurers offering accelerated policies. This is where the policyholder can earn bonus in 10 months rather than 12.
In general the maximum number of no claims bonus years you can claim is 5. Some insurance companies will deliver further discounts for up to 6/7/8 years claim free driving but this is rare. Drivers can’t share a NCB earned on one car between two cars. Even with a maximum NCB it is worth shopping around to assess offers and deals from different insurers, as each provider will calculate it’s underwriting in a slightly different way.
