What is no claim discount?

Published 18/03/2016 10.13 AM   |    Updated 31/07/2018 11.39 AM

No claim discount (NCD), also known as a No Claim Bonus, is a discount on your car insurance premium that your insurer may offer as a reward for not having made a claim against your policy. Typically, you earn one year of NCD for every year you don't make a claim on your car insurance.

In order to benefit from any potential NCD, you need to build up a claim-free driving history in your name.

New drivers won't be entitled to NCD because they've not got enough experience on the roads yet.

If you're a named driver on someone's car insurance policy, and you aren't the NCD holder, you won't be able to build up your own NCD either.

If you're thinking of insuring your car with LV=, you may be able to bring your NCD from your former insurer with you to reduce the overall cost of your premium.


Did we answer your question?