It takes years to earn No Claims Discount - look after it!
No Claims Discount (NCD) or No Claims Bonus as it is sometimes referred to as, is the single biggest determining factor in the prices you will be offered for your car insurance.
No Claims Discount can take up to 75% off your gross premium, so losing it once you've gained it and turn your nice cheap car insurance into a not-so-nice hefty cost.
Once you reach 4 years or more no claims discount, many insurers will offer you an extension to your policy called No Claims Discount Protection (or NCDP) which will allow you to make a certain number or fault claims within a certain period of time (generally between 3 and 5 years) without affecting your No Claims Discount. There is invariably an additional cost for this, but if you do have a slip-up it may just save you money in the long run.
Also, for minor damage to your car, consider getting it fixed yourself rather than making a claim. Not only will it prevent any loss of your NCD, but even if you have an NCDP policy, having a fault claim in your driver history may add a loading (extra cost) to your policy the following year anyway. So think carefully before you pick up the phone to make a claim. Adding a higher voluntary excess to your policy may also help you to resist the temptation to claim and also reduce the cost of your car insurance premium.
Remember that to keep any online discount that you are given, you will most likely have to purchase the policy online, rather than over the phone.
Our full list of car insurance providers who provide online quotations can be found here.
- Buy online - the easiest and most obvious one! Most insurers offer some kind of incentive for you to buy online. Click here for over 30 online car insurers.
- Shop around - it's a free and very competitive market, so don't be afraid to shop around and see who can offer you the best service at the best price for you.
- Voluntary excess - by simply increasing your voluntary excess (the amount you agree to pay towards a claim) your insurer will likely reward you with a lower premium.
- Vehicle security - some insures will apply discounts for approved alarms, immobilisers or tracking devices on your vehicle. Check out the options while you are completing your car insurance quotes.
- Keep all your eggs in one basket - insurers like customer loyalty and will likely reward you for having multiple polices with them.
- Take the right level of cover - consider the value of your car when choosing a level of cover. Is an insurer likely to write your car off instead of repairing it on comprehensive cover?
- Ditch the kids! - 'fronting' a policy for your children no longer makes financial sense.
Provider of the Month
