No claims discount
No claims discount is pretty much what it says on the tin: a discount insurers give drivers for not making a claim on their policy. But there's a little more to it than that, which is why we've created this handy guide containing all you need to know about the insurance benefit.
What does no claims discount mean?
If you can prove to your insurer you're a safe and responsible driver, they'll reward you with a discount on your premium. All drivers can take advantage of this benefit, provided they haven't made a claim and have been driving for over a year. A no claims discount is sometimes referred to as a no claim bonus.
How does no claims bonus work?
For each year you don't claim on your car insurance policy, you'll earn one more year's worth of no claims discount. The more years you have, the bigger the discount will be at your renewal. In fact, drivers who've built up five years of no claims could pay up to 25% less – potentially saving hundreds of pounds every single year.
If you need to make a claim, insurers will usually take off two of your no claims discount years at renewal, but you won't lose the rest. This will vary between providers though, so it's always worth checking the small print.
If you need to claim for an accident that wasn't your fault, then you might not lose any of your no claims discount if your insurance provider can reclaim costs from the other party's insurer. Or, if the person at fault can't be decided, then insurance providers may decide to split the cost, meaning both drivers' no claims discount will be affected.
What is the maximum no claims discount?
You can actually build up your no claims discount for an unlimited number of years. But most insurers will only offer discounts for a set number of years. At Hastings we offer a discount up to nine years.
How long does no claims bonus last?
So long as you've always got car insurance, your no claims discount will remain intact up until the point you need to make a claim.
However, if you don't have car insurance for one or two years, you could stand to lose all the years of no claims discount you've built up. This is called the 'grace period' and varies between insurers; it can be as short as one year or as long as three years. The best thing to do is check your policy so you know exactly where you stand.
How do you get proof of car no claims discount?
If you decide to change your car insurance provider, they'll want to see proof of your no claims discount.
Your current insurer may include details of your no claims discount in your renewal or cancellation letters. If it can't be found in either of these, you're entitled to request they send proof either by contacting them by phone or filling out a form on their website.
What is no claims discount protection?
Insurance providers give the option to protect your no claims discount at the time of taking out a policy. This type of extra cover essentially protects all the years of no claims you've built up, even if you're involved in an accident and your insurance provider can't reclaim any of the costs from the other side.
No claims discount protection is likely to apply only to a set number of claims determined by your insurance provider, so you'll need to check the terms and conditions.
Is no claims protection worth it?
While no claims discount protection may not prevent your premium from going up after a claim, it does mean you won't lose your discount. Just think of the years it'll take to build up the no claims discount you have – it's a no-brainer for most drivers.
Can I have no claims discount on two cars?
You can usually only use a no claims discount on one car. It can be transferred from one car to another, but it can't be used on two cars at the same time.
If you drive a company car, you might find you can build up a discount on that car, so long as the business has you as a named driver on their policy.
Quality car insurance with Hastings Direct
Hastings Direct offers quality car insurance loaded with benefits, all for a price that won't break the bank. Choose from third party, third party fire & theft or comprehensive cover, then tailor your policy to suit your needs by adding some optional extras.
Comprehensive Hastings Direct and Hasting Premier policies feature two no claims discount-related benefits. If you're hit by an uninsured driver, you won't lose your no claims discount and you won't have to pay any excess agreed at the time of taking out your policy. You also won't lose your no claims discount if your car's vandalised.
With these policies, you'll also get EU cover for up to 90 days per trip, a courtesy car whilst yours is being repaired, in-car entertainment cover and windscreen cover.
Our Hastings Direct and Hastings Premier car insurance policies are Defaqto 5 Star rated, meaning they offer one of the the highest levels of cover on the market. Get a competitive quote today and don't forget to tell us about your no claims discount so we can knock more money off the price of cover!