24/1/2025

Understanding no-claim discounts and how they work

When it comes to car insurance, one term you often hear is "no-claim discount." But what does it mean, and how does it work? Let’s break it down.

A no-claim discount (NCD) is a reward from your insurer for driving safely and not claiming on your car insurance. The longer you go without filing a claim, the bigger your discount. It’s a way of saying “thank you” for being a low-risk customer.

 

How does It work?

Each year that you don’t make a claim, you earn a no-claim"bonus." This increases your discount for the following year. For example, if you’ve gone five years without making a claim, you’ll likely receive a higher discount than someone who hasn’t claimed for just two years.

However, if you make a claim, you might lose part of your bonus. Some insurers offer “no-claim protection,” which lets you keep your discount even if you claim once or twice.

 

Why is it important?

A no-claim discount can save you a lot of money. Insurance premiums can be expensive, but with a no-claim discount, you could pay significantly less.This is why many drivers try to avoid small claims. Sometimes it’s cheaper to cover minor damages yourself rather than risk losing your discount.

 

Tips:

  1. Drive safely – Avoid accidents to keep your bonus growing.
  2. Check your policy – Not all insurers calculate discounts the same way.
  3. Think before claiming – For minor damages, paying out-of-pocket might be smarter.

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14/3/2025

How does buying an electric car affect your car insurance?

Electric cars (EVs) are becoming increasingly popular due to their environmental benefits and lower running costs. But what many drivers wonder is: how does buying an EV affect your car insurance? Let’s explore the key factors.

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Why young drivers pay more for car insurance

Purchasing car insurance can be a significant expense, especially for young drivers. Insurance companies often charge higher premiums for this age group due to several key factors: