No Claims Discount explained

When you are looking at car insurance, you will hear companies talking about No Claims Discount (NCD). It is an important part of your insurance and below is an outline of what it is and what we will need from you, including examples.

What is No Claims Discount?

  • This is the number of years you have had insurance for and not made a claim. The more years you have without making a claim, the higher your NCD is
  • When you buy a policy we will ask you to send us proof of your NCD from your last insurer
  • Your NCD cannot be used on more than one policy at any one time
  • If you have 4 or more years NCD, you may be able to protect it for an additional cost. This means that if you make a claim during the year we won’t reduce your NCD unless you are unfortunate enough to make 2 claims over a 3 year period

If you don’t protect your NCD and have to make a claim then you won’t earn any benefit for that year. If you have NCD on your policy and make a claim for an accident that was your fault, or any claim where the costs can’t be recovered your NCD will be affected as shown below:

  • If you have 5 years or more NCD this will reduce to 3 years
  • If you have less than 5 years NCD this will reduce by 2 years

Proof of NCD we can accept:

For private vehicles insured in the UK:

Your NCD will be shown on your renewal offer and we will also accept a letter from your previous employer, on headed paper, with the following criteria:

  • Show the NCD in years or percentage
  • Show the name of the driver who earned the discount
  • Show the date the policy ended or was due to be renewed
  • Show the registration of the car
  • Must be less than 2 years old
 

For company vehicles insured in the UK:

We currently allow a discount from company vehicles where we are supplied with a letter from the employer stating the following:

  • How long the regular driver was insured by the company
  • Full details of accident, claims and loss history
  • That the regular driver had sole use of the vehicle including personal usage
  • The regular driver must no longer have use of the company vehicle for the discount to be applicable
  • The maximum proof we can accept from a company is 9 years
 

For Experienced Driver Discount:

Budget Insurance’s Experienced Driver Discount is different,offering customers the opportunity to be rewarded for safe driving. We will accept a letter from your insurer or schedule, The criteria is as follows:

  • It must be for an active policy on a different vehicle to the one being insured with us
  • It must show the No Claims Discount in years or percentage
  • It must clearly state your name as the policy holder or as a named driver who is the husband/ wife or civil partner of the policy holders
  • It must be from a car or van - we cannot accept No Claims Discount from motorcycle policies

How to send your proof to us

You must supply your proof of NCD within 7 days of the policy start date. If you do not do this the cost of your insurance may go up and in some cases your policy may be cancelled.

You can send it to us in the following ways:

By SSC upload: Register and log in to your Self-Service Centre where you can upload your NCD proof. 

By email: NCD@budgetinsurance.com

By post: Insurance Services, Unit 25, Tresham Road, Orton Southgate, Peterborough, PE2 6BU

Please remember to include your policy number when you send your proof of NCD to us.