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All about No Claims Discount

By Russell Wilson, 25th September 2023

Category: Car insurance

It may seem unfair that people who are unlucky enough to need to claim are penalised, especially if they did not cause the claim, but the evidence shows that those who do claim are then more likely to claim again than those who do not. Also, it incentivises people not to claim for small damage.

For each year you drive without making a claim, your No Claims Discount is increased by one year. This discount is yours and you can take it to another insurer if you move your insurance. However, your No Claims Discount can only be used on one car. If you have more than one car, each one will earn its own No Claims Discount.

Named drivers No Claims Discount

If you are a named driver on a car and have a number of years’ experience without claiming, you may be entitled to get a discount for this experience. When you get a Green Motor Insurance quote with The Green Insurer, simply put in 0 years for your No Claims Discount and our quoting system will ask you about your claim free driving experience.

What happens if I claim on my no claims discount?

When you do make a claim, your no claims discount will be reduced, normally by 2-years for each fault claim. This will not affect your current policy, but when you come to renew, you will have fewer years No Claims Discount, meaning that your premium will be higher than if your had kept your No Claims Discount.

Claims for windscreen or glass only damage do not affect No Claims Discount.

No claims discount faults and non-fault claims

The standard terminology of fault and non-fault claims is slightly misleading. A fault claim is not only one where you have made a claim due to an accident which was caused by you, but also for one where a claim has been paid by your insurance company. This can include claims where a dispute about fault cannot be resolved or a claim where the person who caused the damage is not known. So, for example, if your car is damaged when it is parked and the person who caused the damage does not leave their contact details, this is deemed to be a fault claim, as your insurance company had to pay for the damage.

How do I get proof of No Claims Discount?

When your car insurance comes up for renewal, you will receive a renewal invitation from your insurance provider. This should show the number of years of No Claims Discount you have. Alternatively, once your policy lapses, you can ask your insurer for proof of No Claims Discount. You can use either of these documents as proof of your no claims discount for your new insurer.

If we ask you for proof of your No Claims Discount when you buy a policy, please upload it in your portal or email it to us at help@thegreeninsurer.com.