Car insurance no claims discount explained

What's a no claim discount? A no claim discount is a reduction in the cost of your car insurance if you don't make a claim. You usually earn one year of no claim discount for every claim-free year of motoring. So, if you don't make a claim for five years, you'll have five years of no claim discount applied to the basic cost of your car insurance.

You can’t usually build up a no claims discount if you drive a vehicle that is insured via an “ any driver” policy. But if you’re listed as the main driver of a vehicle you also use outside of work, you will often be able to earn a no claims bonus if you go for one or more years without making a claim.

The discount normally only builds up if you hold a policy for a continuous period of time – so if you do not own a car, and are not insured, for several years, for example, the clock will be re-set on your no-claims discount and any previous no-claims period is unlikely to be recognised.