A guide to No Claims Discounts (NCDs)
A no claims discount can dramatically reduce the cost of your car insurance. However, there are a number of questions which frequently arise regarding NCDs and proof of NCDs. Below we address a few of the more common queries.
I have two cars – can I get an NCD on both?
Unfortunately not. You can only use your NCD on one vehicle at a time. However, if you are a claim-free driver, some car insurers will be able to offer you an introductory discount on a new second car that is equivalent to the no claims bonus that you currently hold.
How do I prove my NCD to an insurer?
The easiest way to prove your NCD is with a copy of an original car insurance renewal notice. Most insurers will also accept a policy schedule or letter from your previous insurer stating the value of your NCD, when it was earned, and who the NCD applies to. Look out for time limits – some insurers will only accept your NCD if your previous insurance policy expired less than two years ago. You should also bear in mind that an NCD can only be claimed for the main driver of the vehicle, which may not necessarily be the policyholder.
Will insurers accept NCD that I have built up abroad?
As a rule, yes. But you will have to provide valid proof of your NCD. This proof must fulfil the same criteria outlined above. It must also be written in English and must come from a registered car insurance company. In addition, the letter must show your claims and accident history.
Can I use the NCD I built up with my company car?
For drivers who have driven a company car claim free, car insurance companies will generally allow a discount. You will be required to provide a letter from your employer stating how long you were insured with the company, full details of your claims and accident history, and confirmation that you had sole use of the vehicle including personal usage. However, NCD earned on a company car can rarely be transferred between spouses regardless of whether or not they are covered under the company insurance. Should your company car have been allocated in a family-run business, the letter must come from your car insurance company or broker instead, as in this case most car insurers will be unable to accept a letter from the employer. An important point is that, for the discount to be applicable, you, the regular driver, must have ceased using the company car in question. Some vehicles may not be considered acceptable for discount by some insurance companies. These include taxis, agricultural vehicles, such as tractors, Ministry of Defence vehicles, hearses, and any type of van, irrespective of size and weight.
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