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How does No Claims Discount (NCD) work?

All about your NCD, how to send us proof of NCD and what happens to your NCD if you claim

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Written by Ticker
Updated over a week ago

What is NCD?

NCD stands for No Claims Discount and is sometimes referred to as No Claims Bonus (NCB). It reduces the price of your insurance policy: the longer you go without making a claim as a policyholder, the bigger the discount.

When you take out a policy with Ticker, we may ask you to provide proof of your NCD.

How do I earn NCD?

NCD is earned once you’ve completed your first year of claim-free driving with one insurer as the policyholder. You can then earn an additional year’s NCD for every year that no claim is made against your insurance policy. Most insurers cap your No Claims Discount at nine years.

We’ll automatically email your proof of NCD when your Ticker policy ends.

What happens if I’ve changed vehicle?

If you no longer own the vehicle that’s shown on your proof of NCD, just let us know when you send it to us.

What must proof of NCD include?

For us to accept proof of NCD, it must:

  • Be in the policyholder’s name

  • Provide the previous dates of cover

  • Be an official company-issued document

  • State the No Claims Discount entitlement

  • Have been earned in the UK within the last two years

  • Include your vehicle registration

If you no longer own the vehicle on your proof of NCD, please let us know when you send it.

Can I transfer my NCD from another insurer?

Yes – you’ll just need to provide us with proof of your NCD. Your previous insurer should send this to you when your policy ends, and it’s usually included in their renewal invitation. If you’re not sure, just ask them for proof of your NCD (they’ll know what that is).

NCD only increases when you complete a full 12-month policy, so if you leave your insurer part-way through your policy, you’ll lose any months you’ve earned.

Can I use my NCD on more than one vehicle at a time?

If you insure multiple vehicles, you must build up the NCD entitlement separately for each policy. This is standard practice for all insurers.

If you’d like to transfer your NCD from another policy to ours, we just need to see proof that your NCD is no longer being used on your other vehicle.

Can I earn NCD as a named driver?

Unfortunately, even though you're driving the vehicle, you can't earn NCD as a named driver. You have to be the policyholder to earn NCD.

Can I use NCD from a different type of vehicle on my insurance policy?

Most insurers don't let you use NCD earned on a different kind of vehicle (like a motorbike) on a car policy. However, we are happy to accept NCD earned on a car policy for a Ticker van insurance policy, as long as you're 20 or over and have no claims or convictions.

What if I take a break from driving?

Your NCD is valid for two years after a policy ends – after this, you’ll have to start building up your NCD from zero again.

What if I provide a fake NCD?

While it can be tempting to buy fake NCD documents through social media, please think twice before doing this – it’s fraud. NCD is something that's earned, not bought, and the consequences of faking it can be very serious.

When you get caught providing a fake NCD document, you’ll most likely have your insurance cancelled. You’ll need to declare this on any future insurance policies, making them much more expensive. You could also find yourself out of pocket as most insurers will keep any money you paid if they catch you committing fraud.

How much discount do I get?

Check your policy schedule for a table of the discount you'll get per year of NCD.

What if I make a claim?

If you do make a 'non-recoverable' claim (a claim where we couldn’t recover the money from another insurer), your NCD will be reduced at your next renewal.

If you’ve got at least four years of NCD, you can choose to pay a bit more money to protect or guarantee it. A protected NCD lets you make two claims in a year before your NCD is reduced.

Here’s how it works:

Windscreen claims don’t affect your NCD, but you’ll still need to declare them when taking out another insurance policy.

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