A no claims discount helps to reduce the price of your insurance if you are claim-free whilst on a policy. The discount builds up with each claim-free year you have, meaning the longer you go without a claim, the better the discount will be.
Adding a learner onto your insurance so they can practise in your vehicle can be confusing, but with temporary learner cover, it becomes an easier, cheaper process that also has no claims discount protection, meaning you won’t lose your discount if an accident happens whilst the learner is behind the wheel.
What Is A No Claims Discount in Car Insurance
It might seem obvious, but an insurer prefers it if you do not need to make a claim when under their policy, as they prefer to not have to pay out (naturally!) – this is why no claims discounts exist.
By offering insurance premiums to drivers who can prove they have had no claims in recent years, they will attract more customers, as those who can prove they have a good track record can reap the rewards of the discounts.
This system essentially rewards safe drivers with cheaper insurance. You can stay with the same insurer and get the discount from them, or you can change insurers, in which case you will have to provide proof of having no claims on your previous policy.
These policies are designed to reward careful drivers. Although some accidents are out of your control, careful and sensible drivers will have more chance of having no claims on their policies.
What Can Damage Your No Claims Discount?
Your discount can be damaged by an accident that is your fault, as well as an accident that is not your fault, but the cost can’t be claimed by the other party – an example of this could be if a parked car is hit and the other driver cannot be found.
If you add a named driver to your insurance, this could also bring damage to your claims discount if they have an accident in it too. If this driver has an accident in your car, it is you that will have to make the claim, as you are the main driver of that vehicle.
This is why adding another driver on the insurance to practise driving or just to borrow the car can be a risk to you and your bonus. Imagine you’ve spent years or even decades building an unblemished record, only for it to go up in smoke because someone you added to your annual policy has had an accident – it doesn’t bear thinking about!
Rather than adding a named drive you should consider temporary car insurance for them instead…
How to Protect Your No Claims Discount
Instead of adding a named driver to your insurance and running this risk to your no claims discount, opt for temporary car insurance for the driver using your car.
This can save you the stress and the money of potentially damaging your no claims discount. Plus they can take out the policy themselves, saving you the time of adding them to your existing policy. Trust us, it’s so much quicker!
Our temporary insurance options are ideal for learner drivers, or for drivers who just need to borrow a vehicle for a short amount of time. The policies can be hourly, daily or monthly, so it can be flexible around what you need.
A driver using your vehicle under temporary insurance will not be able to damage your no claims discount, as it is separate from your main policy, meaning you can have peace of mind letting them use your vehicle. This flexible and affordable option can suit everyone better, as both drivers can use the car without having to worry about each other’s insurance and how it may impact the main driver of the vehicle.
It also means the person borrowing the car can take out a policy for only the time they need the vehicle, meaning no money is wasted on extra insurance. Protecting your no claims discount is important; if you are a safe driver, you’ll want to keep your no claims record going for as long as possible to improve your discount, saving you money in the long run. To ensure you protect your discount, use temporary car insurance if you are planning on letting someone borrow your vehicle, it’s cheaper, easier and stress-free.