Do You Need to Protect Your No Claims Discount?

A drivers’ no claims discount is often a point of pride. After all, it is a great indicator of how safe a driver you are if you haven’t had any accidents that were your fault in the last X years. However, in the modern days of insurers asking about non-fault accidents as well as about the ones that were your fault, some people are in a position where they are perhaps unfairly seeing their no claims discount and associated benefits reduced.


In recent years, the popularity of no claims protection has skyrocketed. Insurance companies advertise this as a means of covering yourself if you are hit by an uninsured driver or because you drive tens of thousands of miles a year and the law of averages says you are more likely to have an accident.

Do you really need to protect your no claims discount?

What is No Claims Discount Protection?

In a nutshell, it is a policy on top of a policy. Say you have a no claims bonus based on five years of accident free driving. While you will receive the necessary reduction on your insurance premium – the exact percentage or fee of which depends on your insurance provider or broker – you can choose to pay an additional fee to protect your no claims discount.

Then, if you have an accident, your no claims discount remains in place the next time you renew. In effect, you are wiping the accident from your quote, which should keep, at least in theory, the price low.

Should I Protect It?

Although insurance companies ask about all accidents irrespective of fault, at the end of the day if five people a year hit you from behind when you are sat at a red light it is likely, assuming you are a safe driver, and are able to slow down in plenty of time, that most, probably all, were not your fault.

Therefore, while an insurer might deduce that you are more likely to have an accident, for whatever reason (could be related to where you drive, how much you drive, the time of day you drive, for example), the truth is that the fault element is still a big factor in coming up with a premium.

If you feel you are a safe driver, then there perhaps is no reason for you to protect your no claims discount, especially when many insurers now include protection from non-insured drivers as part of their standard policies anyway. If it helps you be more confident on the road, then use it, but you do not need to view it as an essential.

Image Author:Alan Cleaver