No claims discount explained.
Learn about your no claims discount and how it affects your car insurance. And find the right cover with Tesco Car Insurance.
Published: 15 February 2026
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What is a no claims discount?
A no claims discount is a discount you get on the price of your car insurance if, in previous years, you’ve not:
- made a claim on your policymade a claim on your policy
or
- been in an accident that was your faultbeen in an accident that was your fault
It's also called a no claims bonus, sometimes shortened to NCD or NCB.
How does a no claims discount work?
The longer you go without making a claim, the less of a risk you’ll be in the eyes of your insurer. And that can lead to a larger discount.
Here are the basics of how a no claims discount or no claims bonus works:
- You earn one year of no claims discount for each year you don’t make a claim.You earn one year of no claims discount for each year you don’t make a claim.
- More years with no claims means bigger discounts.More years with no claims means bigger discounts.
- No claims discounts are often capped after 5-9 years.No claims discounts are often capped after 5-9 years.
- If you make a car insurance claim, you could lose some or all of your no claims discount.If you make a car insurance claim, you could lose some or all of your no claims discount.
Bear in mind, the terms and conditions for no claims discounts can vary between providers. For full details of your cover, it’s always best to check your policy documents.
Types of policy
You can build up your no claims discount with any kind of car insurance policy:
- third partythird party
- third party, fire and theftthird party, fire and theft
- fully comprehensive car insurancefully comprehensive car insurance
You can learn more about comprehensive car cover in our guide - What is comprehensive car insurance?
New drivers
New drivers buying a policy for the first time start with zero no claims discount. But, even with a year’s worth of no claims discount, you could save up to 30% on your car insurance. That's according to the Association of British Insurers.
Named drivers
Only the main driver of the car can earn a no claims discount.
- Named drivers don’t usually earn their own no claims discount.Named drivers don’t usually earn their own no claims discount.
- Only one driver - the policyholder - earns the discountOnly one driver - the policyholder - earns the discount
It’s worth noting that, if a named driver has an accident, it can affect the policyholder’s no claims discount.
Multiple cars
You can only earn one no claims discount per policy. That’s because you’re earning the discount on the car you’re insuring at the time.
- You can’t use the same no claims discount for more than one car at the same time.You can’t use the same no claims discount for more than one car at the same time.
- You have to earn a separate no claims discount for each car you own.You have to earn a separate no claims discount for each car you own.
- You can transfer a no claims discount to a new car or a new insurer. But you can’t share it across active car insurance policies.You can transfer a no claims discount to a new car or a new insurer. But you can’t share it across active car insurance policies.
How to prove no claims discount on car insurance
You’ll usually get a Proof of No Claims document with your renewal or cancellation documents. You’ll get these from your current provider.
- Your Proof of No Claims will show the number of years’ no claims discount you’ve earned.Your Proof of No Claims will show the number of years’ no claims discount you’ve earned.
- You can take your no claims discount with you to a new provider, by providing your Proof of No Claims.You can take your no claims discount with you to a new provider, by providing your Proof of No Claims.
- Your new provider should honour your no claims discount.Your new provider should honour your no claims discount.
What does protected no claims mean?
If you have protected no claims, it means your no claims discount is protected, even if you make a claim.
- You pay extra to protect your no claims discount as an add-on to your car insurance policy.You pay extra to protect your no claims discount as an add-on to your car insurance policy.
- You can make a claim and keep your no claims discount, subject to limits.You can make a claim and keep your no claims discount, subject to limits.
- Protection rules can vary, so it’s always best to check the details with your provider.Protection rules can vary, so it’s always best to check the details with your provider.
Can I protect my no claims discount?
You can protect your no claims discount if:
- you’ve earned enough years’ no claims discountyou’ve earned enough years’ no claims discount
- your provider offers protection as an optional extra on your car insurance policyyour provider offers protection as an optional extra on your car insurance policy
With Tesco Car Insurance, you can add protected no claims discount for an additional cost if, subject to your claims history:
- you’ve earned 4 or more years’ no claims discountyou’ve earned 4 or more years’ no claims discount
If you pay extra to protect your no claims discount with us:
- You can keep your full no claims discount if you make no more than 2 claims within 3 years.You can keep your full no claims discount if you make no more than 2 claims within 3 years.
- In your first year with us, you can claim twice and keep your no claims discount at renewal. If you claim again, your no claims discount will be reduced.In your first year with us, you can claim twice and keep your no claims discount at renewal. If you claim again, your no claims discount will be reduced.
- It won’t stop the price of your car insurance policy from going up later.It won’t stop the price of your car insurance policy from going up later.
What happens to your no claims discount if you make a claim?
- Without protected no claims, your no claims discount will either go down or you’ll lose it completely.Without protected no claims, your no claims discount will either go down or you’ll lose it completely.
- Even non-fault claims can affect your no claims discount unless the costs are recovered.Even non-fault claims can affect your no claims discount unless the costs are recovered.
- With protected no claims, you can make a limited number of car insurance claims and keep your no claims discount.With protected no claims, you can make a limited number of car insurance claims and keep your no claims discount.
Tesco Car Insurance with no claims discount
Whether you’re a new or existing customer, your no claims discount can help you to save money on your car insurance.
Already have a no claims discount with Tesco Car Insurance?
- Your no claims discount has been applied to your policy, helping to lower your premium.Your no claims discount has been applied to your policy, helping to lower your premium.
- You can pay to add protection at the start or renewal of your policy.You can pay to add protection at the start or renewal of your policy.
- With protection, you can make up to 2 claims in 3 years without affecting your no claims discount.With protection, you can make up to 2 claims in 3 years without affecting your no claims discount.
- If you exceed the claim limits, your no claims discount protection will end or the amount will go down.If you exceed the claim limits, your no claims discount protection will end or the amount will go down.
Bringing a no claims discount from another provider?
- You can transfer your Proof of No Claims to Tesco Insurance when you take out a car insurance policy with us.You can transfer your Proof of No Claims to Tesco Insurance when you take out a car insurance policy with us.
- Your years of no claims discount still count and help to reduce your premium.Your years of no claims discount still count and help to reduce your premium.
- You can add our no claims discount protection to your policy, if you’re eligible.You can add our no claims discount protection to your policy, if you’re eligible.
- We might ask you to provide evidence of any years you’ve not made a claim.We might ask you to provide evidence of any years you’ve not made a claim.
Why choose Tesco Car Insurance?
It’s easy to find out what the options are and compare cover levels with Tesco Car Insurance. Here are just a few of the reasons to choose us:
- No claims discount and no claims bonus protectionNo claims discount and no claims bonus protection
- UK-based customer serviceUK-based customer service
- 99% of Car Insurance claims paid (July 2024-June 2025)99% of Car Insurance claims paid (July 2024-June 2025)
- Optional extras to increase your coverOptional extras to increase your cover
- Save money with your ClubcardSave money with your Clubcard
You can choose from different cover levels. And you can add optional extras like Breakdown Cover and Car Key Cover for an additional cost.
Help for Car Insurance customers
If you’re a Tesco Car Insurance customer, find out how to manage your policy, get in touch or make a claim.
Important information
Tesco Car Insurance is arranged and administered by Tesco Insurance and is underwritten by Tesco Underwriting Ltd.
Tesco Insurance Breakdown Cover is provided, administered and underwritten by RAC Insurance Ltd.
Key Cover is underwritten by AA Underwriting Insurance Company Ltd. Claims are handled by Keycare.
You’ll find complete details of the cover, monetary limits, exclusions, excesses and terms in our policy documents.
Learn more about Car Insurance
Compare our Gold, Silver and Bronze comprehensive cover and save money with your Clubcard. For drivers aged 21 and over.