Asger Risom
Failing to transfer your No Claims Discount when switching insurers could mean losing years of savings—up to £700 annually, according to experts.
Failing to transfer your No Claims Discount when switching insurers could mean losing years of savings—up to £700 annually, according to experts.
What Is a No Claims Discount?
A No Claims Discount (NCD) rewards drivers for each year they avoid filing a claim. After five years, discounts can reach 70%, dramatically reducing your premium.
Why It Matters So Much
A driver paying £1,000 a year could drop that to £300 with a full NCD. Over 10 years, that’s a £7,000 saving—wiped out if the discount isn’t properly transferred.
The Costly Mistake Drivers Make
Many drivers forget to request proof of their NCD when switching insurers. Without it, they start from scratch—losing all accumulated discounts.
How to Transfer Your Discount
Always request official NCD proof from your old insurer. Ensure your new policy starts as the old one ends to avoid coverage gaps or resets.
How to Protect Your NCD
Consider Full Protection to retain your discount after one or two claims. Alternatively, Step-Back Protection reduces it by just a level or two after a claim.
When Not to Claim at All
For small repairs, paying out of pocket may be smarter. A £200 repair could save you £500 in raised premiums by preserving your NCD.
Don’t Overlook Named Drivers
Named drivers with clean records can sometimes qualify for an Introductory NCD when taking out their own policy—another way to cut costs early.
