NCD Explained: How It Is Calculated and How to Keep It

NCD (No Claim Discount) is the discount you build by not claiming. It is one of the largest factors in your premium, and also the easiest to lose without noticing.

The NCD ladder for private cars

The discount applies to the base premium, so the effect is large. At 55% you pay less than half the full premium.

NCD belongs to the owner, not the car

This is the part most drivers get wrong. NCD is recorded against the registered owner, not the vehicle. That means:

• Change cars, and your NCD moves to the new vehicle in the same class
• Sell your car, and the buyer does not inherit your NCD
• One NCD can only be applied to one vehicle at a time

If you own several vehicles, each builds its own record.

How NCD is lost

An own-damage claim where you are at fault resets your NCD to zero. Not down one rung — straight to zero, and the ladder restarts.

For small damage, do the maths first: the repair cost versus the higher premiums over the next few years. Paying out of pocket is often cheaper.

Claims that do not affect your NCD:

• Claims made against an at-fault driver's policy
• Windscreen claims, if you carry windscreen cover

Check before you renew

NCD records are held centrally and can be checked with a plate number and identity card number. Check before renewing, because:

• Records are sometimes not updated after a vehicle change
• A quote built on the wrong NCD gives you a misleading price
• Record issues are far easier to fix well before expiry

In short

Keep the record clean, check your percentage each year, and make sure it carries across when you change vehicles. Our quotes account for your NCD, so the price shown is the price you actually pay.