No claims discount:
Protected NCD and guaranteed NCD:
Insurers prefer customers that don't make claims from their insurance policy. |
To attract customers with good driving records, and to give customers an incentive not to claim for small knocks, for fear of losing their NCD, drivers with a good history are offered a large discount off the rate (called No Claims Discount/Bonus).
Normally, the discount for the first year of claim free driving is 30 per cent, going up by 10 per cent a year from then on. The maximum No Claims Bonus is generally 60 per cent but some companies do offer up to 70 per cent, which can be misleading as they usually start with a higher base rate and are not necessarily cheaper.
"After a fault claim, your bonus will revert to 30 or 40 per cent if you are on maximum NCD at the time of the accident. If you are not on maximum NCD you normally lose all of your bonus."
Insurers offer a PROTECTED NCD to drivers already on maximum bonus only. (obviously only to drivers with a good record of not making claims). Usually, for an extra 5 per cent to 15 per cent of your net premium you can protect your bonus for up to 2 fault claims in a five year period. This can be expensive and needs serious consideration before accepting.
Some Insurers offer a GUARANTEED NCD which does not limit the number of fault claims that can be made. Again, this is only offered to drivers with a good record, and costs between 3 per cent and 5 per cent extra on top of the Protected NCD price. Of course, this is only in force whilst you remain with that insurer.
"NCD protection schemes are worth considering if the extra cost is less than 10 per cent of your premium."
When moving from one company to another, your new company will require written confirmation of your NCD. Your renewal notice will show this, or ask your old insurer to post it to you.
Examples:
• Admiral
Offer guaranteed NCD (with an increased compulsory excess).
• E Car Insurance
Automatically include guaranteed NCD if you have five years or more bonus.
• Liverpool Victoria
Also offer guaranteed bonus protection.
• More Than
Offer lifetime maximum no claims discount protection.
Company car drivers.
Several companies will allow no claims discount to company car drivers with a letter from their employer ststing how long they have driven company cars without a fault claim.
Some companies accept a 'headed' letter from the employer, others require further criteria such as not having a company car any longer and must have stopped driving company vehicles etc.
You normally have to be over 25 years of age to be eligible:
• E car insurance
These are quite flexible and should be your first call.
• Direct Line
Will accept a letter but need other criteria.
• Liverpool Victoria
Will accept a letter.
Named driver on someone else's policy
• Direct line Group
Will allow no claims bonus if the named driver was on one of their policies.
• Quinn-Direct
They will allow no claims bonus from other insurance companies.
Introductory No Claims Bonus
• Admiral Group
Give introductory no claims bonus for drivers without any no claims bonus in certain cases.
They offer a 10 month policy to all clients which gives you one years no claims discount after 10 months, which is transferable.This offer is available to any driver with less than maximum no claims discount.
• Direct Line Group
Will offer introductory no claims discount in certain cases.
Comments
Never purchase protected NCD for more than 10 per cent extra on your premium. Remember, guaranteed NCD only applies whilst you are with that company.
• Protected NCD is great at the right price!
• The More Than, Lifetime maximum NCD, is a good offer.
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