What is the no claims discount?

A no claims discount (NCD) is a reward given to policyholders who haven't made any claims on their insurance policy during a specific period, usually a year. It is a way for insurers to incentivize responsible and careful driving. The discount is applied to the premium when you renew your policy, and it can significantly reduce the cost of car insurance. The amount of discount typically increases each year you don't make a claim, up to a certain maximum. This discount is transferable, meaning you can take it with you when you switch insurers. It is an excellent way for safe drivers to save money on their insurance premiums and is a valuable benefit provided by Direct Line Insurance.