Van insurance: your no-claim bonus explained
You drive your van every day for work, but how much do you really know about the insurance discount building up while you’re on the road? From how long it will last to what happens if you make a claim, here’s everything you need to know about your no-claim bonus.
What is a no-claim bonus?
A no-claim bonus is a reduction in the cost of your van insurance that is applied when you haven’t made a claim for a specified amount of time. It’s also known as a no-claim discount or a NCD. Its value is usually measured in years – for example, a “three years no-claim bonus”.
How can I build up my no-claim bonus?
It’s simple - every year that you’re insured and don’t make a claim, you earn another year of no-claim discount. You can only claim NCD in whole years, so if you switch policies within 12 months, you won’t necessarily earn any discount for that year.
How long does a no-claim bonus last?
As long as you’re still insured with the same provider, there isn’t a no-claim bonus expiry date. If, for some reason, you’re not insured for two years or more, any no-claim discount you earned under your last insurance policy will usually be lost and you’ll be back at zero the next time you take out cover.
Is it worth switching insurance providers?
Staying with the same insurer and renewing each year is the most-straightforward way to keep your no-claim bonus safe. If you find a better deal elsewhere and want to change providers, you can still keep your NCD as long as you can prove how much you’ve built up.
What can I use as proof of my no-claim bonus?
Different insurance providers accept different documents, but usually a renewal notice or cancellation letter is enough evidence of a no-claim discount. This will have probably been sent to you by your existing provider at your last renewal, but if not, you can ask for it.
How can I find out how many years’ no-claim bonus I have?
Your latest renewal document will say how many NCD years you’ve earned. Can’t find it? Just give your provider a call and they’ll be able to tell you.
Will a non-fault accident affect my insurance?
At Direct Line, we won’t reduce your no-claim discount or increase your insurance premium if you’re involved in a non-fault accident.
If you were at fault and a claim is made against you, your NCD may be affected. The good news? Some insurers give you the option to pay more to partly protect your no-claim discount in these circumstances.
How much no-claim bonus you can keep will vary depending on how many years you’ve built up and how many claims you’ve made over a certain period. Regardless of whether you choose to protect your NCD, if you’re involved in an accident that you’re liable for, your insurance premium will probably still go up.
Does windscreen replacement affect my no-claim bonus?
No, windscreen replacement will not impact your no-claim bonus.
If I add a named driver to my policy who has built up a no-claim discount, but I haven’t, will this reduce the cost of my insurance, too?
No – the named driver’s no-claim history isn’t used as a factor when calculating how much you’ll pay or save.
If I’m a named driver on someone else’s insurance policy, can I build up a no-claim discount?
If the insurance policy is with us, then yes. We recognise named drivers’ no-claim history, so we’ll take into account how many years you haven’t made a claim on someone else’s policy.
To get this named driver no-claim bonus transfer, make sure you give the details of the policy you’re named on when you get your quote.
Can I use a car no-claim bonus on my van insurance?
Yes. We accept NCD if you earned it on a van, car or motorcycle, but it can only be used on one vehicle at a time.
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