If you haven't made an insurance claim for a couple of years, you'll probably qualify for a No Claims Discount on your Car Insurance premiums. It's important to understand how these discounts work.

How No Claims Discounts are calculated

No Claims Discounts reward safe drivers by giving them a reduction on their insurance premium if they don't make a claim. Usually, for every year that you have insurance on a car, but don't make a claim, you earn another year's ‘No Claims Discount', up to a maximum number of years.

A minimum of five years without a claim usually qualifies you for the maximum discount with most insurers.

Protecting my No Claims Discount

By paying a little extra on your premium you can protect your No Claims Discount. This means you'll still receive the discount, even if you have to make a claim. It's important to be aware of how many claims you can protect your discount against, and over what period.

With Car Insurance from John Lewis Finance, you can protect your No Claims Discount against any two claims made within three years. The cost of protecting your discount may go up if you have a claim.

Points to note about your No Claims Discount

If you make a claim you probably won’t lose your discount, you may just go down to a lower level - for example, a four-year No Claims Discount might be reduced to two years. But if you then make another claim in quick succession, and you haven't got a protected No Claims Discount, you are likely to lose your No Claims Discount altogether.

No Claims Discounts vary from insurer to insurer and each company calculates them differently. You should always shop around to make sure you get the best possible deal based on your claims history.

John Lewis Finance is a trading name of John Lewis plc. John Lewis plc is an appointed representative (Financial Services Register No. 416011) of Covea Insurance plc. Registered in England No. 233462. Registered office 171 Victoria Street, London, SW1E 5NN.

Car Insurance arranged by John Lewis Finance is underwritten by Covea Insurance plc. Covea Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 202277). Registered in England and Wales No. 613259. Registered office Norman Place, Reading, RG1 8DA.

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