What is No Claims Discount (NCD) and how can it benefit me?


NCD’ is one of those insurance terms that is often used when purchasing car insurance. But do you know what it actually means? And do you know how it can benefit you? Have a read below to find out. 

What is No Claims Discount? 

For each year that you don’t make a claim and you are the main driver of your insurance policy, you are awarded one year of NCD at renewal. For each year you earn NCD a discount is applied to your insurance premium. You must be the policyholder to qualify for the discount but it’s a great way of getting a discount when it comes to your renewal. Named drivers can‘t usually build up a no claims discount. Although they can build their own if they’re insured as the main driver on their own car. You can even switch NCD between your husband or wife.

How much discount can I really earn through No Claims Discount? 

The more years NCD you have, the more discount you’re entitled to, up to a cap of 9 years 

How can I earn No Claims Discount? 

Simply be insured with Budget Insurance for a year and if you do not make a claim, you will earn a year NCD and the relevant discount will be applied to your renewal. 

If you have taken a new policy with Budget Insurance, you will be asked to provide your NCD proof from your previous insurance provider. Here’s what to do if your policy was cancelled a year ago.

The information we capture regarding your NCD would be added to your policy. We would then need to receive your proof of NCD. Here’s what to do if the proof of no claims discount is showing the wrong amount.

Can I protect my No Claims Discount? 

Budget Insurance offers Protected No Claims Discount to customers who have four years NCD or more. This additional cover allows you to protect your NCD for up to two claims that were your fault in a three year period. NCD Protection does not protect the overall price of your car insurance policy. The price of your insurance policy may increase following an accident even if you were not at fault. There would be an additional charge to protect your NCD. Why not see if you could benefit from this and protect your NCD! Click here to find out more. 

If you have any questions about your NCD, our Customer Services team are available to help with any queries. Give them a call on 0344 412 2118, they are available to take your calls from Monday to Friday 8am – 9pm, Saturday 9am – 5pm and Sunday 10am – 4pm. 

*Based on Budget Car Insurance data in January 2017 at least 10% of Budget Car Insurance customers received this level of No Claims Discount. 


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