Important information regarding revised Call Centre operating hours due to COVID-19. Click here.

What is a no-claim discount?

A no-claim discount (NCD) is a discount on your Comprehensive Car Insurance premium that increases each year you don’t make an at-fault claim. (It’s also known as a no-claim bonus.)

The more consecutive years you remain claim-free, the bigger your discount.

At Budget Direct, the NCD is capped at 5 years. When you reach this ceiling, we’ll give you a maximum no-claim discount, also known as a Rating 1.

(Ratings start at 6 and decrease for every consecutive year you don’t make a claim; the lower your rating, the bigger your discount.)

How big is my no-claim discount?

The following table shows the discount you receive on your Budget Direct Comprehensive Car Insurance premium for every year you go without making an at-fault claim.

Ratings start at 6 and decrease every consecutive year you don’t make a claim; the lower your rating, the bigger your discount.

Claim-free years

NCD rating

Discount

5

1

15%

4

2

12%

3

3

9%

2

4

6%

1

5

3%

0

6 (None)

0%

Note that minimum premiums may affect the discount you’re entitled to.

What happens to my no-claim discount if I make a claim?

Each time you lodge a claim with Budget Direct, your no-claim discount (NCD) is reduced by two years on renewal of your policy, unless:

  • the accident was not your fault and you can identify the at-fault party
  • the damage was caused by severe weather (e.g. hail)
  • your claim is for window glass only
  • you have NCD Protection (subject to conditions).

In all other claims scenarios, your NCD would be reduced.

For example, if you had a Rating 1 (maximum no-claim discount) and you made one at-fault claim in a given year, your rating would drop to 3.

This means the discount on your Budget Direct Comprehensive Car Insurance premium would fall from 15% (Rating 1) to 9% (Rating 3).

Can I transfer my no-claim discount to Budget Direct?

Yes — you can transfer your no-claim discount from your previous insurer to Budget Direct. 

To do this, you must supply us with proof of your previous discount. 

For example, you may have a renewal notice from your previous insurer that shows your no-claim discount (or no-claim bonus or driver rating).

Alternatively, you can contact the insurer and ask them to send you the notice or other proof, which you can then pass on to us. 

We’ll factor in the discount when we calculate your premium.

Do you need proof of my no-claim discount from my previous insurer?

Yes — if you want to transfer your no-claim discount (NCD) from your previous insurer to Budget Direct, you’ll need to provide us with proof of your NCD (or no-claim bonus or driver rating). 

This proof can be in the form of one of the following:

  • renewal notice or offer from your previous insurer
  • a document showing:
    • you held a 12-month insurance policy at some point within the last 12 months
    • car registration number
    • regular driver or policyholder
    • NCD or driver rating
    • claims (if noted).

When must I send you proof of my no-claim discount?

You must send us the proof of your no-claim discount (or no-claim bonus or driver rating) within 14 days of the start of your Budget Direct Comprehensive Car Insurance policy. 

Where must I send you proof of my no-claim discount?

Please send the proof of your no-claim discount (or no-claim bonus or driver rating) — with the subject line ‘NCD [Budget Direct policy number]’ — to:

Email:
csd@autogeneral.com.au
Fax:
07 3377 8855
Web:
smartcapture.com.au
Post:
Auto & General Services
PO Box 342
Toowong QLD 4066

How can I find out what my no-claim discount or driver rating is?

If you’re a Budget Direct customer, you can see your no-claim discount (NCD) or driver rating by:

If you’re not one of our customers, you can find out your NCD by similar means via your current insurer.

Does a no-claim discount guarantee my premium won’t increase?

No — a no-claim discount (NCD) won’t necessarily stop your Budget Direct Comprehensive Car Insurance premium going up when your policy is renewed.

That’s because each year we reassess your risk profile, taking into account not only your discount, but also your claims history, age, how you use the car, and the drivers listed on your policy.

This means your premium could be increased before your NCD is applied.

So, while your NCD may reduce your new premium, it could still be higher than the previous year.

This is the case even if you’ve paid to protect your NCD (remember, you’re paying to protect your discount, not your premium).

Does windscreen damage affect my no-claim discount?

No — if you have a Budget Direct Comprehensive Car Insurance policy and you make a claim for window-glass damage only, it will not affect your no-claim discount. 

Does theft affect my no-claim discount?

Yes — if you have a Budget Direct Comprehensive Car Insurance policy and you make a claim for theft, your no-claim discount (NCD) will be reduced by two years (unless you have NCD Protection).

This is unless the thief is caught and we recover the costs from them, in which case your NCD will not be affected. 

Does malicious damage affect my no-claim discount?

Yes — if you have a Budget Direct Comprehensive Car Insurance policy and you make a claim for malicious damage, your no-claim discount (NCD) will be reduced by two years (unless you have NCD Protection).

This is unless the vandal is caught and we recover the costs from them, in which case your NCD will not be affected.

Does storm damage affect my no-claim discount?

No – if you have a Budget Direct Comprehensive Car Insurance policy and you make a claim for storm damage (e.g. hail), it will not affect your no-claim discount.

How many years of claim-free driving can I accumulate?

At Budget Direct, the no-claim discount is capped at 5 years.

After you’ve accrued five or more claim-free years in a row, we’ll give you a maximum no-claim discount, also known as a Rating 1.

Will I lose my no-claim discount if I cancel my car insurance policy?

If you cancel your Budget Direct Comprehensive Car Insurance policy, you have 12 months to buy another policy in order to keep your no-claim discount (NCD).

If you don’t buy a policy (from us or another insurer) within that time, you’ll lose your NCD.

If you lose your NCD, you’ll have to start building it up again from scratch (Rating 6).

Note that your discount increases each full year you go without making an at-fault claim (up to a maximum of 5 years).

If you cancel your policy part-way through a year, that year won’t count towards your NCD.

(If you’ve already qualified for the maximum no-claim discount — Rating 1 — cancelling your policy mid-term won’t matter.)

Does my car have to be continuously insured for me to keep my no-claim discount?

No – Budget Direct allows you to have a maximum 12-month gap in your cover before you lose your no-claim discount (NCD).

If you’re without your own car insurance policy for more than 12 months, you’ll lose your NCD.

If you lose your NCD, you’ll have to start building it up again from scratch (Rating 6).

This is regardless of whether you were previously insured by us or another provider.

If you switch to us from another insurer following a break in your car insurance, we’ll accept NCD proof (e.g. a renewal letter) as long it’s not older than 12 months.

Can I protect my no-claim discount?

Yes — for an additional premium, you can add optional ‘No-Claim Discount (NCD) Protection’ to your Budget Direct Comprehensive Car Insurance policy.

To be eligible for NCD Protection, you must have already earned a maximum no-claim discount (Rating 1).

(NCD protection is also known as ‘Rating 1 protection’.)

How does no-claim discount protection work?

Budget Direct’s optional ‘No-Claim Discount (NCD) Protection’ allows you to make a specified number of at-fault claims without affecting your NCD.

You can make one at-fault claim in each 12-month period of insurance or two at-fault claims across three periods (i.e. 36 months) without affecting your NCD.

So, even if the accident was your fault or your car was stolen or maliciously damaged and we can’t recover the claim costs, your NCD won’t be reduced.

Note that, if you make a claim, at renewal time we’ll reassess your risk profile, regardless of your NCD history.

So, while you may not lose your NCD, the discount may apply to an increased premium that reflects your higher risk rating.

(To be eligible for NCD Protection, you must have already earned a maximum no-claim discount, or Rating 1.)

How do I add ‘NCD Protection’ to my policy?

You can add optional ‘No-Claim Discount (NCD) Protection’ when you get a quote and buy a Budget Direct Comprehensive Car Insurance policy. 

If you’ve already bought a policy, you can add NCD Protection by contacting us or logging into your online account and editing your policy.

Can I get a maximum discount for life?

Yes — if ‘Rating 1 for Life’ is shown on your car insurance certificate, you can keep your maximum no-claim discount for life — as long as you continue to take out NCD Protection.

What happens if I don’t protect my no-claim discount?

If you choose not to protect your no-claim discount (NCD), each time you lodge an at-fault claim with Budget Direct your NCD will be reduced by two years on renewal of your policy.

For example, if you had a Rating 1 (maximum no-claim discount) and you made one at-fault claim in a given year, your rating would drop to 3.

This means the discount on our Budget Direct Comprehensive Car Insurance premium would fall from 15% (Rating 1) to 9% (Rating 3).

Can any driver listed on a policy build up a no-claim discount?

No – only the person listed as the regular driver on a Budget Direct Comprehensive Car Insurance policy can build up a no-claim discount (NCD).  

This prevents household members and other drivers listed on the policy from potentially accruing years of claim-free driving without actually driving the car.  

If, however, one of the other drivers has an at-fault accident that leads to a claim, the regular driver’s NCD will be reduced by two years (unless they have NCD Protection). 

For example, if you’re the regular driver and you add your learner-driver child to your policy and they cause an accident, your NCD will be reduced.  

Does the no-claim discount apply to work vehicles?

Yes — Budget Direct’s no-claim discount (NCD) applies not only to cars used privately, but also cars used by the regular driver for their own business.

We’ll also recognise any NCD or driver rating you earned while you had exclusive use of a company car, before you gave it up.

For example, if you leave the company and have to buy a new family car, we’ll give you a rating based on the number of consecutive claim-free years you drove the company car. 

As proof of your NCD, we’ll need you to give us a letter from either:

  • an authorised person on company letterhead
  • your former employer’s insurance company.

The letter must confirm:

  • the regular driver (i.e. you) is no longer insured
  • the number of years you drove without any claims.

I’m taking out insurance in my name for the first time — can I be given my spouse or partner’s driver rating?

Yes — if you’re new to insurance, Budget Direct can give you your spouse or partner’s no-claim discount (NCD) or driver rating.

(This is assuming they have not only recently attained their learners or provisional licence, in which case you would not be entitled to their NCD rating.)

Your spouse or partner’s car insurance policy must show them as the policyholder or regular driver.

Can I transfer a no-claim discount from overseas?

Depending on which foreign country you’ve been living in, you may be able transfer the no-claim discount (NCD) you built up overseas to your Budget Direct Comprehensive Car Insurance policy.

We recognise discounts earned in about two dozen countries outside Australia. To find out which ones they are, please contact us.

You’ll need to give us proof of the NCD you earned abroad. This proof must be written in English.

What’s the difference between a no-claim discount and a loyalty discount?

A no-claim discount (NCD) is a discount on your comprehensive car insurance premium that increases each year you don’t make an at-fault claim.

The more consecutive years you remain claim-free, the bigger your NCD, up to a certain limit.

As its name suggests, a loyalty discount is a discount insurance policyholders earn by faithfully sticking with the same insurer.

The more policies you have with the insurer and the longer you stay with them, the bigger your discount, up to a certain limit.

Even with your NCD and loyalty discounts, however, you could be paying hundreds of dollars more than you would if you switched insurers.

What is an at-fault claim?

Budget Direct defines an ‘at-fault claim’ as any claim that cannot be recovered from another party, either in part or in full, such as:

  • an accident where we decide the driver of the car is partially or entirely at fault
  • an accident where we decide the driver of the other vehicle or another person is entirely at fault but you cannot tell us their full name, residential address and vehicle registration number
  • theft, attempted, theft or a malicious act
  • storm, wind or hail
  • fire
  • an accident involving an animal.

If you make an at-fault claim, you’ll need to pay the applicable excess/es; and your no-claim discount (NCD) will be reduced by two years (unless you have NCD Protection).

Note that your discount is not affected by claims arising from storm, wind or hail damage (even if you don’t have NCD Protection).

Get a car insurance quote online