Understanding the ins and outs of car insurance and the many different terms can be confusing. One term you'll frequently encounter that can impact your premium is "No Claims Discount" (NCD), also known as a "No Claims Bonus" (NCB). But what exactly is it, and how does it work - especially when it comes to hire and reward insurance?
In this guide, we'll break down everything you need to know about NCD. We'll explain what it is, how it applies to personal versus hire and reward policies, what happens when you make a claim, and crucially, how you can earn and protect this valuable discount to keep your insurance costs down. Whether you're a seasoned driver or new to the road, this guide will empower you with the knowledge to make the most of your NCD.
A No Claims Discount (NCD), also known as a No Claims Bonus (NCB), is a discount offered by insurance providers to policyholders who haven't made a claim on their insurance policy for a specified period, usually a year or more. The more consecutive years you drive without making a claim, the larger your discount typically becomes, potentially leading to lower premiums. It's a way for insurers to reward safe driving.
Any claim-free years you’ve built up with a private vehicle, ie, one you use for social, domestic & pleasure only, won’t count towards your no claims discount when buying commercial auto insurance with INSHUR.
For instance, if you’ve been driving for 9 years claim-free, but for the last 3 years have also been an Uber driver, you’ll have 3 years of private hire or courier NCD provided you haven’t made a claim.
This is because we only take into account any NCD built up as part of your work, eg as an Uber or delivery driver.
If you make a claim on your insurance policy, your No Claims Discount will typically be reduced at your next renewal.
The exact amount depends on the type of claim (e.g., fault vs. non-fault), INSHUR’s terms, and if your NCD is protected.
The following table shows how many years of NCD you could be offered at renewal based on your protected number of NCD vs how many claims are made in one policy period.
For instance, you have 5 years of protected NCD at the start of your policy, but during the term of your policy, you make a claim. At the end of your policy period, you’ll stay at 5 years NCD, instead of 6.
You can help protect your NCD with optional protection if you have 4 or more years of No Claims Bonus as a private hire or courier driver. Read more about this below.
Yes, insurance is generally cheaper with NCD, because the main purpose of a No Claims Discount is to reward safe drivers with lower premiums.
The more years of NCD you accumulate, the larger the discount you receive on your insurance cost, making your policy more affordable. Though some insurers place a limit on how many years of NCD they’ll accept above a certain point.
For an optional fee, you can protect your NCD with INSHUR. It means you can make a claim without sacrificing your built-up discount. This could save you money on your premiums; however, it doesn’t guarantee that your price won’t go up.
To protect, or not protect, is entirely up to you, but if you’ve built up a healthy discount, protecting your NCD could be worth considering.
You can protect your No Claims Discount with INSHUR if you have built up 4 or more years of NCD, whether with us or from a previous provider.
Currently, drivers with less than 4 years of NCD will not be able to pay extra to protect it.
You can protect your NCD with a small fee, which equates to 10% of your premium if you’re a private hire, Uber, or commercial vehicle driver.
For instance, if your insurance quote is £1,500, you can expect to pay an additional £150 to protect your NCD.
Note: NCD cannot be declared on or earned if you’re an Amazon Flex delivery partner. Courier NCD prices vary.
Declaring the wrong amount of NCD, either purposefully or by accident, could be interpreted as fraud. If caught, this could result in your insurance policy being void, leaving you uninsured.
As you’ll know, insurance is a legal requirement for all UK drivers, so it’s better to be honest and stay covered.
You will need to provide proof of any declared No Claims Bonus - this will be requested once your policy has been purchased.
You will receive an email or text message asking you to upload the certificate to our validation company.
Simply upload your document and let us take care of the rest.
Once you reach the end of a claim-free year on your INSHUR policy, you will have earned one year’s NCD. We will include this in your renewal quote. If you’re looking for proof of your NCD to quote with another provider, we will share this with you.
Here's a quick guide to help you get your NCD certificate quickly:
Email - usually within one hour: Your NCD certificate will be automatically generated and emailed to your email address after your policy expires. In most cases, you won't need to do anything! Just keep an eye on your inbox.
When you might need to contact us: The majority of certificates are emailed automatically; there are a few situations where you might need to contact our team, for instance, if you don’t receive your certificate within an hour of your policy expiring.
In this case, send an email to help@inshur.com, and include your name and policy number, and the team will assist you.
Before contacting us, please check your spam or junk email folder. Sometimes, automated emails can end up there.
If you have a 30-day INSHUR policy, we will provide you with a year’s No Claim Bonus if you have had 12 x 30-day short-term policies with us for 12 consecutive renewals.
This is dependent on you not claiming during those 360 days, and without any breaks in cover between monthly renewals.
So if you’ve been continuously covered by us for 360 days, without making any claims, we’ll award you one year’s NCD.
NCD is a valuable way for drivers to reduce their car insurance premiums. While personal NCD doesn't transfer to business policies, drivers can still build up business-specific NCD, potentially leading to a cheaper price at renewal.
By understanding how NCD works, you can effectively manage your insurance costs and potentially save money.
Protecting your NCD is an optional extra across all UK INSHUR policies, except Amazon Flex, so if you have a healthy balance, consider safeguarding it.
Protect your No Claims Discount and your vehicle with a quote from INSHUR.
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