No claims discount on car insurance - how is it calculated?

Minerva69

I passed my driving test a year ago and am about to renew my car insurance. My current insurer has sent me a renewal quote, which states "basic premium with 2 years No Claims Discount - £590". How come it says I have 2 years NCD when I've only been driving a year? Or is NCD worked out per calendar year, not how long you've actually had the insurance for? When searching for quotes will I be able to put I have 2 years' NCD then? Thanks!

pborojon

Minerva69 wrote: »

I passed my driving test a year ago and am about to renew my car insurance. My current insurer has sent me a renewal quote, which states "basic premium with 2 years No Claims Discount - £590". How come it says I have 2 years NCD when I've only been driving a year? Or is NCD worked out per calendar year, not how long you've actually had the insurance for? When searching for quotes will I be able to put I have 2 years' NCD then? Thanks!

It sounds like your insurer allowed an introductory discount last year. Now that you've had a years claim free driving you have the intro discount plus your 1 year earnt.

lisyloo

Normally it will relate to the actual years, but sometimes insurers give bonuses so you've been lucky.

If your renewal quote says 2 years then you are fully entitled to claim you have that.

I would strongly suggest you keep your renewal notice, just in case you need it
e.g. you have to cancel your insurance part way through the year and then later on want to take out a new policy and need proof of NCD.

If you get rid of it and then need it later then you might find your ex company unhelpful about providing it and it could cost you big time.
Normally you won't need it, but I'd keep it just in case.
It's only one bit of paper but could save you loads of money.

BTW - if your new insurers want the original then keep a photocopy or scan it into your computer (just in case its lost in the post).