No claims discount (NCD) explained
No claims discount is one of the most important features of any insurance policy and here we will take a minute to explain the concept in full.
Basically it is a discount that you receive on your car insurance premium as a reward for not having made a claim against your policy.
You need to build up a claim free driving history in your name to benefit from the discount so you can't get one when you first start driving.
There is no standard discount offered across all insurers but in general you get a discount for claim free driving. If you do have to make a claim this may mean that you have to forsake your entire NCD or your insurance company may scale back your discount.
If you are involved in an accident for which you are not liable then if your insurer is able to recover the cost of paying out to you from the liable driver's insurer, your NCD will not be affected.
If you change your car insurance provider you can often bring your no claim discount from your former insurer with you to reduce the overall cost of your premiums.