Can you lose NCD?

Asked by: Miss Katelyn Hickle  |  Last update: October 21, 2022
Score: 4.1/5 (65 votes)

If your insurance provider considers the industry standard of five years to be the maximum NCD, you'll be left with three years' NCD. And if you make a second claim, you'll lose it all.

Do you lose your no claims bonus?

When you make a claim on your policy you'll usually lose some or all of your NCB if your insurer has to pay out – even if it's not your fault. How much of it you actually lose depends on how many years NCB you have, as well as the insurer. After an accident, there might be some situations where your NCB isn't affected.

How do I stop losing my no claims bonus?

If you're a named driver as well as having your own insurance, and you make a claim as a named driver, you won't usually lose your no-claims bonus. Most of the time it affects the policyholder.

Will I lose my no claims bonus if I cancel my insurance?

While you'll get some money back or avoid paying further instalments, which will be more than you'll pay in cancellation charges, you'll lose your no claims discount (NCD) for that year if you cancel early. That said, any previous years NCD will remain.

Do you lose your NCB after 2 years?

Can your No Claims Bonus expire? The expiry period for an unused no claims bonus is two years after you've cancelled your last policy. So if you have taken a break from driving but you don't want to lose your NCB, you'll have to take out a new policy within two years to carry on where you left off.

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How many years NCB do you lose?

Even if you do have to claim for an accident that was your fault, you could still keep some of your NCB. If you make one claim during your insurance period, you'll lose two years of the bonus. So, if you have five or more years NCB, it will reduce to three years at renewal.

Is 9 years no claims the maximum?

Proof of no-claims when your no-claims bonus is higher than your new insurer's maximum. You may go to a new insurer with a higher amount of no-claims bonus than they will accept – for example, if you have 9 years no-claims bonus, but the maximum they apply is 4.

Is it worth having NCD protection?

If you have five years' no claims discount, it will significantly cut the cost of your car insurance. You could lose all that for just one accident. You would also normally lose your discount for being in an accident with an uninsured driver, if you had to make a claim on your own insurance.

How long does NCD last without insurance?

Your no claims bonus won't last forever and it will usually expire two years after you end a policy. So, if you don't drive for two years and you're not insured, your bonus will usually disappear and if you do buy a new policy you'll need to start your bonus up again from scratch.

What happens to NCD after a claim?

Pay the extra, and if you do claim on your insurance, your NCD stays intact. Some insurance providers allow you to make two claims in a year without it affecting your discount.

How many years is maximum no claims bonus?

In reality, most insurance providers cap the maximum no-claims discount at around five years. Some insurance companies do go beyond this - you might find an insurer willing to give you a discount on eight or nine years' worth of no-claims. And having those extra years could come in handy.

What is the maximum NCD for car insurance?

Our maximum No Claims Bonus (also known as No Claims Discount) level is 9 years, so it will automatically be displayed as such on your renewal notice.

Will my insurance go up if I have protected no claims?

If you've protected your no claims discount, then making a claim shouldn't affect the number of years that contribute to your NCD. But if you've had an accident, the basic cost of your premium is likely to go up.

How does a 50/50 Claim affect no claims?

As each party takes equal blame for the accident, both are entitled to claim compensation for any damages and personal injury they may have suffered. How a 50/50 claim works is that when any damages are awarded to either party, you will only receive 50% of the amount awarded as you will be liable for the other 50%.

Can you have two sets of no claims bonus?

Unfortunately, you can only use one set of no claim discount on one vehicle at any time. To earn multiple sets of no claim discount you need to insure multiple vehicles at the same time.

Do insurance companies check NCB?

Some insurance companies will contact your old insurer directly to ask for your no claims bonus proof, or they might check an insurance database to get it. If they do this, they'll tell you first.

Will no fault claim affect my premium?

Unfortunately, yes it does. In many cases, your premiums will go up after you've declared a non-fault claim to your insurance provider. This is because certain circumstances surrounding the accident, even if it wasn't your fault, may lead to more accidents in the future.

How can I check my no claims history?

You can find out how many years of no-claims bonus you've accumulated on your car insurance renewal paperwork, on your cancellation letter, or a letter from your provider confirming your no-claims discount. To be valid, it must be dated within two years of starting your new car insurance policy.

Do I lose my no claims bonus for windscreen replacement?

No, your NCD is not affected for any windscreen claims.

Can I transfer my NCD to another car?

To transfer the NCD from an old car to the new car, you will need to go to insurer's branch and request them to transfer NCD. You will have to pay prorated non-NCD value of the old car. That is OK because it will be lower than paying the full insurance price of the new car.

What happens to NCD after selling car?

Cars will come and go. But your NCD is here to stay. If you didn't know, your car insurance NCD is attached to your name, not your car. So if you sell off your old car, you can still keep your NCD rate for your brand new ride.

What happen to my NCD if I sell my car?

If you sell your old vehicle and decide to purchase a new one, the NCD from the old vehicle can be transferred to the new vehicle. If, however, you do not acquire a new vehicle and your NCD remains unused after one year, it will be reversed .

Does NCD have to be continuous?

That depends on your insurance provider and how long it's been since you last had cover. Many insurance providers will say a no-claims discount is invalid if there's a break in your car insurance of two years or more. But other providers may go to three years.

Can you lie about no claims bonus?

Not only is it illegal, it also means you're not earning your No Claims Discount, which can represent HUGE savings in the long run.

Do I have to pay my excess if someone hits me?

Do I pay excess if accident is not my fault? – typically yes. Your insurer should recover the money from the insurer of the at-fault driver – eventually, then they will pay it back to you.