No Claims Discount Protection UK – Is It Worth It

What is a no claims discount?

A no claims discount (NCD), also known as a no claims bonus, is a reward many motor insurance policyholders receive for driving without making a claim during their policy year. Each claim-free year adds to your discount, often reducing the overall price of your car insurance by a significant amount.

After one year, the discount can reach around 30%, and after five or more consecutive years, it can total 65–75%. Your previous insurer will usually confirm the number of years you’ve built when you change providers.

If you make a claim, that bonus may reduce or be lost entirely. That’s why many drivers pay an additional amount for no claims discount protection — to ensure their years of careful driving remain valid even if they need to claim.

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What is no claims discount protection?

No claims discount protection (sometimes shown as “protected NCD”) is an optional extra that allows you to keep your no claims bonus even after making one or more eligible claims within a set period of time.

It’s designed for policyholders who have built several years of discount and want to safeguard that benefit. Although it doesn’t freeze the overall price of your premium, it ensures that your claim bonus percentage remains the same, helping to keep insurance costs lower than they would be if you lost it.

How it works

• You pay a small extra fee when setting up a new policy or at renewal.
• It allows a specific number of claims over a few years without reducing your NCD.
• Most insurers let you make up to two claims in three or five years.
• The insurer may still raise your premium if you’re seen as a higher risk, but your NCD level remains intact.

Example

Imagine your premium is £1,200 with a 60% no claims discount applied, bringing the total down to £480. If you make a claim, your next renewal might rise to £1,400, but with protection, your 60% discount still applies, reducing it to £560 — rather than losing your discount entirely.

How does no claims discount protection differ from a no claims bonus?

This shows that NCD protection doesn’t replace your no claims bonus — it simply protects what you’ve already earned.

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How many years of NCD do you need before you can protect it?

Most insurance companies require four or five years of no claims history before allowing protection. This demonstrates a proven record of responsible driving. Some will permit protection after three years, though the cost is usually higher.

If you’ve recently switched from a previous insurer, remember to provide proof of your NCD. Insurers may request your NCD certificate, registration number, or policy documents to confirm your driving history.

Does NCD protection cover every claim?

Protected NCD usually applies to most types of claim — from accidents to fire and theft. However, it doesn’t cover windscreen damage, minor glass repair, or single-item claims, as these are typically excluded from affecting your discount anyway.

It also doesn’t mean your premium won’t rise if you make frequent claims. Insurers still evaluate risk based on the type of claim and how often you claim within your policy term.

Can NCD protection affect the cost of other insurance products?

In some cases, yes. Insurance providers may offer multi-policy discounts if you also hold home insurance or other cover with them. Protecting your NCD on your motor policy can help keep you in a lower risk bracket overall, improving eligibility for better rates across combined policies.

Does NCD protection stop premiums from rising?

No — no claims discount protection preserves your discount but doesn’t freeze your premium. After a claim, your insurer might still increase the base rate because your risk profile changes.

For example:

• Without protection: one claim could drop your NCD from five years to zero, drastically raising your renewal price.
• With protection: your discount percentage stays intact, even if your cost of your premium rises slightly due to the claim itself.

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What happens when you switch insurers?

When you move to a new provider, your no claims bonus transfers with you. Your previous insurer will provide an official certificate showing the number of years you’ve built and whether it’s protected.

Your new policy will then apply the same discount, although rules about how many claims are allowed under protection may vary. Always check your new provider’s terms of use and ensure your information matches — including your car’s registration and your role as the main driver.

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Is NCD protection worth paying for?

Whether NCD protection is worth it depends on several key factors, including how much your car insurance costs and how long you’ve been claim-free.

It’s usually a smart choice if:

• You’ve built four or more years of claim bonus
• Your premium is high due to car type, postcode, or mileage
• You drive regularly or rely on your vehicle for work
• You want to avoid a major price jump if you have to claim

If you’re a safe driver with low annual mileage or a smaller car, you may choose to go without protection until you’ve built up more years of discount.

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Can named drivers earn a no claims discount?

In most cases, named drivers cannot earn their own no claims discount on another person’s policy. The main driver — the person who owns and primarily drives the car — is the one who builds up the NCD.

However, some insurance providers do recognise named drivers with a clean history. If a named driver later takes out their own policy, a few insurers may offer an introductory claim bonus or a limited discount to reward safe driving.

It’s worth checking the terms of use on your current policy. If a named driver has been claim-free for several years, the new insurer might count that experience when calculating the cost of car insurance, even though it’s not an official no claims bonus.

FAQs about no claims discount protection