How is my no claims discount affected if I make a claim?
If you make a claim on your insurance and your insurance provider pays out, your no claims discount is typically reduced by two years.
So, if you have eight years of NCD and make a claim, in theory you’ll be left with six years’ NCD. But this isn’t always the case. 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.
If the accident wasn’t your fault, your insurance provider will try to recover the costs from the driver who was at fault. In which case, your NCD should be unaffected.
If no one was to blame for the accident, insurance providers may split the cost of the claims and both drivers’ NCD could be affected.
If your car is stolen, vandalised or damaged and they can’t catch the culprit, your insurance provider won’t be able to recoup its costs. That means your NCD will likely be affected.