Hints and Tips

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?

  • If you have 5 years or more NCD this will reduce to 3 years, then by a further 2 years for any future claims
  • If you have less than 5 years NCD this will reduce by 2 years for each claim

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 or cancellation letter from your last insurer. Budget Insurance will accept NCD 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 Mirrored No Claims Discount:

Budget Insurance’s Mirrored No Claims 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 My Account 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.

We’re currently experiencing a high volume of calls into our contact centre and whilst we are doing our very best to maintain service levels, we ask that you only call our contact centre if absolutely necessary so we can keep our phone lines available  for vulnerable customers and those who don’t have access to online services.

If you need to check any details or make a change to your policy, please  log in to your Self-Service Centre. It will be much quicker for you to make changes to your policy online at the moment. Once logged in, you can also use our Webchat service which is available Monday- Saturday 8am-6pm and Sunday 10am-4pm to make changes, accept or decline your renewal or if you need to let us know about a claim. To log in, please click here.

We also have some other information that may be useful. Click here to read our FAQ’s, and information on what we are doing to support key workers can be found here.