What is no claim discount?

Published 18/03/2016 10.13 AM   |    Updated 26/05/2017 02.44 PM

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. And if you're a named driver on someone's car insurance policy, 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.

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