Do you lose all the No Claims Discount years?

kawan2

Hi,

I have a question which I hope someone can help.

If I have say 10 years NCD and decide not to pay to protect the NCD when I am taking out a new car insurance policy. Say I have an accident and had to make a claim with new insurer.

Do I lose all 10 years NCD or some years depending on the insurer? Currently with AA but thinking of switching either to Saga or John Lewis.

Thanks.

Quentin

If you have a fault claim then you will normally go down from 10 to 3 years at renewal (You lose 2 years from a max of 5 for a single claim)

Aretnap

No. Exactly how a claims affects your NCD depends on the insurer but usually you lose two years for each claim, or you drop back to three years if you had five or more years to begin with. So if you had 10 years and you made a claim you'd have three years at renewal time.

NCD also maxes out - typically at 5 years, which is why you drop back to 3 years if you had more than 5 to begin with. A few insurers do recognise longer periods (eg up to 9 years) but it doesn't mean that they give you a bigger discount - it just means that you take longer to earn it. And even with them the difference between the discount they offer for 5 years and 9 years is fairly small.