If you have 3 or more years of No Claims Discount, you'll be able to add NCD Protection to your policy as an optional extra.
Having NCD Protection stops your NCD from dropping to 0 if you suffer a fault claim, as follows:
Making 1 fault claim, costing less than £45,000, will not affect your NCD.
If the fault claim costs more than £45,000, you'll only lose 2 years rather than losing it entirely.
Here's an example:
You have 5 years NCD.
You're involved in an incident and you were deemed to be at fault. The total cost of the claim was £48,000.
As the total cost of the claim was more than £45,000, your NCD is reduced by 2 years.
This means that at your next renewal date, after the claim had been settled, your NCD has reduced from 5 years to 3 years.
Important: Having NCD Protection does not protect the price of the insurance. Any claim made against your policy can still increase the cost of your insurance at your next renewal. NCD Protection only protects the number of years NCD which will be lost as a result of a claim.