FAQs
17. What is a No Claim Discount (NCD) and how does it affect car insurance premiums?
It is a discount on your car insurance premium. Your No Claim Discount is calculated on your years of driving experience and your claims record. It means as you gain more years of claim free driving experience you receive a discount from the full priced premium until it reaches a maximum discount (also known as Rating 1). This is because we believe you are less likely to make a claim than a less experienced driver.
18. What is the difference between a Rating 1, No Claim Discount and No Claim Bonus?
They are different terms for a scale that insurers use to rank your driving history and risk. Rating 1, NCD and NCB, all refer to a discount that is applied to the full premium.
19. Will I lose my NCD if I have a car accident?
You can protect your Rating 1 (maximum No Claims Discount) by selecting our NCD protection option. This allows you to have 1 car insurance claim per 12-month period of having a Budget Direct car insurance policy, or up to 2 claims in 3 years without affecting the Rating 1.
If you have NCD protection with us for 2 consecutive claim free years, you will qualify for a Rating 1 for life. (Which means all car insurance claims have no effect on your NCD for as long as you have NCD protection). However, you will not lose any NCD on renewal following a window glass claim, or if the other vehicle in a collision is entirely at fault and the driver is identified to us. For other claims, your NCD may be reduced at renewal.
20. What happens if I don't tell Budget Direct about my driving record, past accidents or claims if I am asked?
This is called non-disclosure and affects an insurer's ability to accurately assess your risk or calculate the correct premium. It can lead to a claim being paid only in part, or not paid at all and/or your policy being cancelled.
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