Understanding your no claim discount

What's a no claim discount?

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.

Is a no claim discount the same as a no claims bonus?

In a nutshell – yes. No claims bonus, no claims discount and no claim discounts are all the same thing. Some insurance companies call it a bonus, but it actually acts as a discount on your insurance premium, which is why we call it a no claim discount.

What do I need to know about my no claim discount?

1. It can save you money. Even after just one year of claim-free driving, you can earn a discount of up to 30 per cent on next year's car insurance costs. After five years this could be as much as 60 per cent.
2. It builds up over time. The longer you go without making a claim, the more your discount will be. With LV=, you can build up to nine years of no claim discount.
3. You can take a break. Even if you cancel your car insurance, you can reinstate your no claim discount when you insure a car again. With LV=, as long as the date your last policy ended is within two years of your new policy starting we can honour any no claim discount you previously earned.
4. It's just for you. You can only earn a no claim discount if you're the policyholder named on the car insurance, or if you are an NCD holder on our multi car policy. Plus you can get a 5 per cent discount with our multi car insurance too.
5. You can take it with you. When you buy a new car or change insurance provider, you can take your no claim discount with you.
   
   
   

What happens when I make a claim?

The discount applies because you haven't made a claim from one year to another. So, if you make a claim, and the accident was your fault, you'll lose some or all of your discount.

For example, with LV= if you have six years of no claim discount and you make an 'at fault' claim, the next time you renew your policy we'll apply a discount equivalent to three years of no claims, rather than your previous six years.

Can I make a claim and not lose my no claim discount?

Yes, in certain circumstances you can make a claim and it won't affect your no claim discount.

If you're involved in an accident that wasn't your fault, and we can recover the cost of repairs to your car from the liable driver's insurance, then your no claim discount won't be affected.

If you have comprehensive car insurance and you're in an accident with an uninsured driver that wasn't your fault, then you can keep your no claim discount.

You also won't lose your no claim discount if you need to only make a claim for emergency medical treatment, windscreen damage, breakdown or motor legal expenses.