The No Claims Bonus or No Claims Discount (NCD) is a reward given to drivers who have not had any claims made against their insurance policy for a specified period of time. This incentive encourages safe and responsible driving. With sufficient proof that there have been no claims against your prior insurance policy, you may be entitled to a reduction in your premium cost when you switch to a new insurer like Zego.
How does it work with Zego?
Zego’s implementation of the NCD is relatively straightforward. The extent of the discount you receive on your premium depends on the number of years you’ve held an insurance policy without a claim. The more claim-free years you have, the more substantial your discount will likely be. However, the specific amount of discount can vary between different insurers and even between different insurance products.
What if a claim is made?
If a claim is made on your insurance policy, whether by you or a third party, your NCD entitlement is typically lost. This means that you won’t be able to benefit from a reduced insurance premium based on your NCD, and you’ll have to start accruing claim-free years again from zero.
Protection of No Claims Bonus with Zego
Zego, however, offers an option to protect your NCD. Depending on your specific policy, you might be able to secure your NCD with Zego, allowing you to retain some or all of your entitlement even if a claim is made. For instance, private hire drivers can protect up to 5 years of NCD earned for up to one fault claim.
Proof of No Claims Bonus
To obtain proof of your NCD, you’ll need to contact your previous insurer. This proof could be included in your renewal or cancellation letter, sent as a specific NCD proof letter, or provided upon request. It’s worth noting that Zego offers a unique approach: policyholders can gain a year of NCD if they take out 12 consecutive 30-day ‘pay as you go’ insurance policies.