We get a lot of questions about what a No Claims Discount (NCD) is, so we’ve decided to gather them all in one place👇
What is No Claims Discount?
No Claims Discount (NCD) is a system that rewards drivers who haven’t made an insurance claim. So for every year you drive without making a claim, your NCD grows and you get more money off your insurance.
You’ll get the chance to tell us how many years of NCD you have when you apply for a quote, and the discount will be added automatically.
NCD is also known as No Claims Bonus or Bonus Malus, depending on where you’re from. They’re all the same, and we accept them all - whether you collected them in the UK or somewhere else.
How do I know if I have NCD?
At the end of every policy year, your insurer will offer you a new price for the following year. At the same time, they’ll let you know the updated status of your NCD and how many years you have.
Will you accept my Bonus Malus/ NCD from abroad?
Yes, we will accept your NCD from another country. At Marshmallow, we want to understand your whole driving experience (and maximise your savings), which is why we accept the UK’s NCD and various international equivalents.
Do I need to prove it?
Yes, you will need to prove your entitlement to the NCD discount. If you tell us you have 1+ years of NCD, we’ll ask you to show some proof from your previous insurer. All you’ll need to do is take a photo of your NCD document and send it to us. You can also send a photo of the renewal notice you got from your last insurer, as long as it shows your:
NCD years or Bonus Malus ratio
Details of any claim
Policy expiry date
Contact details of your previous insurer, including phone number, email address, fax number and postal address
If you can’t show proof of your NCD, you will lose your good driving discount and we’ll need to take a separate payment from you.
Please note we cannot verify your NCD documents before you sign up to a policy with us.
We can accept the following documents as proof of No Claims Discount (NCD):
A Closing Statement outlining your time on cover and any claims reported.
Proof of NCD letter
An email forwarded from your previous insurer stating your NCD years
A Renewal Invitation from your previous insurer
A schedule of insurance that shows your NCD in %
We won't be able to accept NCD for the following:
Learner NCD
NCD for a motorbike
NCD for fleet insurance
What’s the difference between NCB and NCD?
There's no difference between NCB and NCD, they are two names for the same thing. One stands for No Claims Bonus and the other for No Claims Discount. At Marshmallow, we use No Claims Discount (NCD).
Things to remember:
NCD / Bonus-Malus must have been earned whilst driving a car or van. We cannot accept NCD earned whilst driving a motorbike.
Your NCD is only valid for 3 years once you’ve stopped collecting them. So, for example, if you haven’t driven in 3 years, it won’t be valid anymore and you’ll lose your discount.