What does protected no claims discount mean?
No claim discount (NCD) protection is an optional cover which protects your NCD from one “at fault” claim every year. It does not protect the overall price of your insurance policy, but does guarantee that your premium won’t increase next year as a result of a claim.
Is it worth having NCD protection?
If you have five years’ no claims discount, it will significantly cut the cost of your car insurance. You could lose all that for just one accident. You would also normally lose your discount for being in an accident with an uninsured driver, if you had to make a claim on your own insurance.
Will my insurance go up if I have protected no claims?
If you’ve protected your no claims discount, then making a claim shouldn’t affect the number of years that contribute to your NCD. But if you’ve had an accident, the basic cost of your premium is likely to go up.
How does no claims discount work?
A no claim discount is a reduction in the cost of your car insurance if you don’t make a claim. You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don’t make a claim for five years, you’ll have five years of no claim discount applied to the basic cost of your car insurance.
Do I lose my no claims bonus if someone hits me?
Your own insurer will be notified for information purposes only as required by the terms of your policy, but they will not handle the claim and so your no-claims bonus should not be affected. In addition to this you will not have to pay the excess on your policy.
How long does a no claims bonus last?
There’s no standard maximum period over which you can accrue a no-claims bonus. Some insurance providers cap it at five years, others at nine. Some may even let you input 25 or more years when comparing the market. Be warned, if you have an accident and you’re at fault, your no-claims discount could come to an end.
Does no claims discount make a difference?
No Claims Discount Tool As a motorist, your no claims discount makes a massive difference to cost of your insurance premium. Many can end up slicing on average 24%* off the price you first paid after five years of claims-free driving.
How many years no claims do I need to protect them?
five years
How long before you can protect your no claims bonus? Each insurer will have their own rules. It’s common for many insurers to require five years claim-free driving before you can protect your bonus, but others may ask for just three. Check with your own insurance company.
How many years does NCD last?
two years
That depends on your insurance provider and how long it’s been since you last had cover. Many insurance providers will say a no-claims discount is invalid if there’s a break in your car insurance of two years or more. But other providers may go to three years.
When can I protect my no claims?
How long before you can protect your no claims bonus? Each insurer will have their own rules. It’s common for many insurers to require five years claim-free driving before you can protect your bonus, but others may ask for just three. Check with your own insurance company.
Will I lose my no claims if an accident wasn’t my fault?
A no claims bonus (NCB), or more correctly a no claims discount, is awarded if you don’t claim in the latest policy year. Even if you have an accident that wasn’t your fault – you’re hit by an uninsured driver, or your car gets stolen – you could lose your NCB, and your premium could even go up at renewal.
Can I split my no claims between 2 cars?
But, you can request proof at any time and the insurer will supply it. Can I split my accumulated NCB across two cars? No. You can only use your exisiting NCB in one policy for one car, but you can build up a separate NCB in another car insurance policy for a second car.
Is it worth protecting your no claims discount?
Protecting your no claims discount is a tricky subject and there are certainly a few pros and cons. Many people point out that if you have a protected no claims bonus and you have an accident, your premiums the following year will almost certainly be significantly higher. The counter argument to this point is that if this does happen, you will be paying less than you would if you had no discount at all.
Should you protect your no claims discount?
You can pay extra to protect your no claims discount, but whether or not it’s worth doing this will depend on your personal circumstances, including the size of the no claims bonus you have built up. Generally speaking, the bigger your bonus, the more you stand to lose and the greater the value of the protection.
Do I need protected no claims discount?
You can choose to pay to protect your discount – this is known as a protected no claims discount – and means that you can keep your discount, even in the event of making a claim. Another important factor is the ability of your insurer to recover the costs from another party.
What is protected no claims discount?
NCD Protection doesn’t protect the overall price of your insurance policy