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When I Claim Will I Lose All of My No Claims Discount?

Who you are insured with, plus the circumstances surrounding the claim, determine if you will lose your No Claims Bonus.

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  3. When I Claim Will I Lose All of My No Claims Discount?

If you make a claim on your Motor Trade insurance policy and you don’t have protection for your No Claims Discount (also known as No Claims Bonus), you could be at risk of losing years of No Claims Discount that you have built up.

Whether you lose all or some of your No Claims Discount can vary from insurer-to-insurer, and may also depend on what sort of claim you have made. For example, an ‘at fault’ accident could see you lose all of your No Claims Discount, whereas a different type of claim might only cost you two or three years of No Claims Discount (assuming you have built up several years of Discount).

So, How Could You Lose Your No Claims Discount?

Third Party Only – If you are involved in accident and you are the guilty/ ‘at fault’ party, then your insurance company will be liable to pay for the repairs or replacement of the third party’s vehicle, and as such this is likely to cost you your NCD.

Third Party, Fire and Theft – With this level of cover, you could lose your No Claims Discount if you have to claim for fire damage to your car, if it’s stolen, or if you are at fault in an accident.

Comprehensive – In the event you claim for your own vehicle if you are involved in accident and you are the guilty party, or if you aren’t the guilty party but costs cannot be retrieved from a third party, then you could lose your No Claims Discount. This is in addition to the things mentioned in Third Party Only and Third Party, Fire & Theft (above). 

Can I Protect My No Claims Discount?

Most reputable insurance companies will allow you to protect your No Claims Discount, so that in the event you have to make a claim, your NCD will not be affected. However, the Protected No Claims Discount may not be transferable to another insurer – so always check this before moving to a different insurer at any point. It is also worth noting that you cannot protect your No Claims Discount after a claim either.

If you have any questions over your No Claims Bonus, or you want to protect the Bonus you have earned, call our expert Motor Trade insurance team on 0800 221 8077.