Many insurance companies use no-claims discount (NCD) to reward their drivers for not making a claim during a specified timeframe, usually a policy year. This, in turn, encourages sensible driving behaviour.

For example, if four years pass by without a customer making a claim on their policy, they will have earned four years’ worth of no-claims discount. This discount usually results in a reduction in premium costs upon policy renewal. The discount will depend on the insurance company’s specific terms and the number of consecutive claim-free years. In some cases, there may be a maximum limit to the number of years of NCD that can be accumulated, and this should be checked with insurance companies on a case-by-case basis.

Protected no-claims discount differs from standard no-claims discount in the way that an insurer may allow for more than one claim to be made before the discount is lost or reduced. A fee may be payable for this added layer of protection, commonly in the form of slightly higher premiums.

We always encourage our customers to opt for the highest level of protection when it comes to their NCD. This will ensure that they have a greater level of cover if the worst happens.

Always remember that if you’ve been involved in an accident that wasn’t your fault, we have a method here at CARS which enables us to repair your car without impacting your NCD, even if it’s not protected. We also have various excess support options available to our customers. Call us on 01472 453622 for further information.

Visit our blogs ‘How do I choose the right insurance company for me?’ and ‘I’ve had an accident; do I have to pay my excess?’ for further information.