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 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.

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

The more years NCD you have, the more discount you’re entitled to. Take a look at the table below to see what discount you could be entitled to with a Budget Car Insurance policy;

Number of years No Claims Discount

Discount % (Dependant on insurer)*

One year NCD

Up to 36%

Two years NCD

Up to 39%

Three years NCD

Up to 42%

Four years NCD

Up to 47%

Five years NCD

Up to 50%

Six years NCD

Up to 54%

Seven years NCD

Up to 58%

Eight years NCD

Up to 60%

Nine years or more NCD

Up to 61%

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. The information we capture regarding your NCD would be added to your policy. We would then need to receive your proof of NCD

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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