No Claims Discount (NCD), also known as No Claims Bonus or Bonus Malus, is a discount you earn on your insurance for each year you don’t make a claim.

Each claim-free year helps you build your No Claims Discount, which can reduce the cost of your car insurance when you need to renew your policy.

Most insurers will only accept your claim-free driving history in the UK. If you’re new to the UK, that can mean a much higher price. At Marshmallow, we accept your claim-free driving history from anywhere, so we can save you money and give you a much fairer price on your car insurance.

‍How does No Claims Discount work?

The idea is simple: the fewer claims you make, the cheaper your car insurance will be.

Every year you have insurance without making a claim, you earn one extra year of No Claims Discount. If you’ve been insured for five years with no claims, you could be eligible for five years of No Claims Discount.

Most insurers will have a maximum they offer, but you could save 60% or more by building up your No Claims Discount.

If you need to make a claim, your discount will be reduced. If you have many years already you won’t lose them all, and can build them up again by staying claim free.

How do I apply for a No Claims Discount?

When you get a car insurance quote, you’ll be asked how many years of No Claims Discount you have.

If you have driving experience in the UK, your current insurer will have given you a certificate that shows your No Claims Discount years.

If you’re getting a quote with Marshmallow, we’ll also consider any claim-free years from driving abroad. This means if you passed your driving test or were insured outside the UK, you can provide these NCD numbers when you get your quote.

I’m new to the UK, can I get a No Claims Discount?

With Marshmallow you can still get a No Claims Discount if you’ve just moved to the UK.

Most insurers will only count years of driving in the UK towards your No Claims Discount, but Marshmallow is different.

We will accept proof from insurers outside of the UK, so you will get the same level of discount as everyone else. We will still need to see proof of No Claims Discount from your previous insurer. If it’s not in English, don’t worry. Just upload your proof in its original language and we’ll sort the rest. You can do this for any documents you upload to get car insurance with us.

• Find out what other documents you need to get UK car insurance
• Learn more about car insurance for people new to the UK

How can I prove my No Claims Discount?

To apply your discount, we will need proof of your No Claims Discount from your previous insurer. You can prove this by sending us one of the following documents:

• Proof of No Claims Discount letter (sometimes called a ‘Certificate of No Claims’)
• Closing statement showing your time on cover and any claims
• Email from your previous insurer confirming your No Claims Discount years
• Renewal invitation from your previous insurer
• Schedule of insurance showing your No Claims Discount percentage

You will be asked to upload your document in the Marshmallow app within seven days.

Want to know more? Read our guide on how to provide No Claims Discount proof.

What is a Protected No Claims Discount?

Some insurers, including Marshmallow, offer Protected No Claims Discount as an optional extra.

This lets you make up to two claims a year without losing your No Claims Discount. It’s a great way to protect the savings you’ve built up over years of careful driving. ‍

Learn more about Protected No Claims Discount.

Can car insurance prices go up without No Claims Discount?

It’s always possible for your car insurance price to go up. Even if you have a respectable No Claims Discount. Even if it’s protected.

There are many reasons why this might happen. Some affect the car insurance industry as a whole like inflation. If your car or personal circumstances change this can also affect your insurance price.

If you make a claim with a protected No Claims Discount, your policy price may still increase. This is because your No Claims Discount is a percentage of the overall price. So although you're still getting money off, the overall cost to begin with is more expensive.

‍Can use a No Claims Discount on two cars

At most insurers, you can only use your No Claims Discount on one policy at a time. But at Marshmallow, we can accept your NCD being used on more than one policy. Useful if you've got more than one car to insure.

‍Do I keep my No Claims Discount if I stop driving for a few years?

It varies by insurer, but your claims-free driving record generally only lasts two or three years if you don’t have your own car insurance.

At Marshmallow, we can accept a No Claims Discount that’s up to three years old.

This applies if you stop driving, or spend time as a named driver on another policy. Remember, you only build years of claims-free driving experience while you have your own car insurance policy.

‍Can named drivers build up a No Claims Discount?

Named drivers are additional people that you can add to your policy so they can legally drive your car. This covers them for all the same things as you. Including damage to your car and others if you have an accident.

But, while named drivers will have the same cover as you, they won’t build their own No Claims Discount. And if they cause damage that requires a claim, the policyholder will need to make it. This could affect their own No Claims Discount.

What could impact my No Claims Discount?

Your No Claims Discount can change depending on your situation. Here are some of the most common reasons it could be affected:

I can’t get hold of my last insurer Don’t give up! To honour your No Claims Discount, we need proof from your previous insurer. If you need more time, please let us know by starting a Live Chat in the Marshmallow app or on our Help page.

I didn’t have car insurance before moving here Not all countries require car insurance by law, so you might not have records. If that’s the case, we can’t apply a No Claims Discount, but you’ll still get a discount based on your years of driving experience. And if you drive with us for a year claim-free, you’ll start earning a UK No Claims Discount.

I stopped driving for a few years If you’ve been uninsured for three years or more, your No Claims Discount usually expires. This means you’ll start building it up again once you’re insured again.

I need to make a claim If your claim is classed as a “fault claim” (i.e. we pay for the damage and don’t recover the cost), your No Claims Discount may be reduced.

If your claim is classed as “non-fault” (e.g. an accident was caused by another driver and their insurer pays for the damage), your No Claims Discount usually remains unaffected.

Typically you’ll lose 2 years of NCD per claim. So if you have built up many years of NCD, you won’t lose it all after one claim.

If you have No Claims Discount Protection, you can make 2 fault claims a year without affecting you NCD.

Need to make a claim? Follow our step-by-step claims guide.

I have another driver on my insurance policy

Having a second driver on your policy won’t impact your No Claims Discount. Only the policyholder earns No Claims Discount.

I need to switch provider You can take your UK No Claims Discount with you when you move to another insurer. To do this, you can request a No Claims Discount certificate from us when you leave. This will only apply to your UK-based driving history. If you’re benefitting from years of claim-free driving from abroad with Marshmallow, you’ll lose this when you go to another insurer.

Ready to start saving money on your car insurance? Get a quote from us today.