‘No Claims Discount’ explained

What ‘no claims protection’ means and how it works.

The no claims bonus (or no claims discount) has been a feature of most car insurance policies for a long time, but one question our customers often ask us is what exactly does it mean.

Put simply, it is a discount that you earn by holding a motor insurance policy in your own name, without making any claims. It builds up to a max number of years, so the longer you drive without any claims the bigger your discount will be. It’s a way of encouraging and rewarding safe driving, and can make a big difference to your premium.

But it can also mean drivers live in fear of losing their precious ‘no claims bonus’, and do everything they can not to have to make a claim. At Liberty Insurance, we know that accidents happen, even to the most experienced drivers. This is why we go one step further and offer ‘Step back no claims protection’, which protects part of your no claims discount. So, even if you need to make a claim, you won’t have to start again from scratch.

"We believe that taking your good driving record into account is a fair way of doing things: It’s insurance the way it should be."

The rules are simple: If you have five or more years no claims discount, you will keep two years after one claim. If you have four years discount, you will keep one year after your first claim.
We believe that taking your good driving record into account is a fair way of doing things: It’s insurance the way it should be.

Further ways to lower your insurance costs:

• Consider downsizing: opt for a smaller or less powerful car as this may reduce your premium
• Named driver discount: if this is your first car insurance policy in your own name, you may be eligible for a named driver discount, if you’ve been a named driver on someone else’s policy and made no claims
• Multi-policy discounts: we reward customer loyalty by giving you multi-policy discounts of up to 10% on every additional motor or home insurance policy you buy from us. This discount extends to policies in your spouse or partner's name too