What is no-claim?

What is no-claim discount?

A no-claim discount means that you receive a discount on the premium of your car insurance. This no-claim discount is linked to the condition that no claim is submitted to the insurer during a certain period. In other words, you either drive claim-free or pay for minor expenses yourself and have to pay a lower premium for your car insurance as a result. If, after obtaining the no-claims discount, you make another claim with your insurer, you will again pay more premium. You will then lose a number of claim-free years. This is in stark contrast to the no-claim discount where there is room for making a (yearly) claim.

How do you build up no-claims?

The no-claims discount follows the bonus-malus ladder. As a result, the discount increases as you accumulate more no-claim years. These are full years in which you cause no damage. The number of claim-free years is maintained by the insurer and can be found on the policy schedule, although this is not the case with all insurers. The no-claim discount starts from the first claim-free year. The exact details of the no-claim accumulation vary from insurer to insurer. Another special feature is that you can sometimes take over no-claim years from a partner who voluntarily renounces the accumulated no-claim years. This is often subject to a number of restrictions. For example, you cannot take over more claim-free years than you have a driving license for. Finally, special derogations also exist for those who drove a leased car. Based on a lease statement, they can sometimes also build up claim-free years and thus enjoy a no-claim discount.

Can no-claim discount and no-claim protector be transferred?

Just as you can transfer claim-free years from your partner, you can also transfer the claim-free years you have accumulated. And along with the claim-free years, the no-claim discount is also transferred. This can be interesting for several reasons. For example, if the insured person dies, the claim-free years can then be transferred to the other regular driver. This can be your partner, for example. Also, if the insured is no longer able to drive due to an accident, the transfer of claim-free years is an interesting track. In practice, however, it is most often applied in case of divorce, so that the partner does not have to be left behind without claim-free years.

Just know that with no-claim protection, there are no premium consequences associated with a claim, but on the other hand, the number of claim-free years decreases. And because there are fewer claim-free years, fewer claim-free years can also be transferred. Moreover, in which cases and to whom the no-claim discount can be transferred varies from insurer to insurer. At Alpina, for example, we choose to transfer claim-free years only between partners. The advantage of this is that we can make our prices extra competitive. And young people also reap the benefits of this.

What should I do with no-claims after damage?

If you have car damage, it sometimes comes at the expense of your claim-free years and no-claim discount. This is because any at-fault damage claimed on your car insurance policy will cost you claim-free years. This means that when you accidentally drive into another car, the fault is attributable to you. As a result, the other party's damage will be claimed on your car insurance policy. You then lose claim-free years and subsequently receive less no-claim discount. You will therefore pay more for your car insurance.

Damages you claim on your WA limited casco car insurance do not affect your no-claims. These include damage caused by hail, fire or storm, broken windows, theft of the car or a collision with stray animals. Was the accident caused by the other party? Then you can claim the damage from the other car insurer. Even then this will not affect your claim-free years and no-claim discount.

Claim-free years transferable since 1-1-2022

Since Jan. 1, 2022, claim-free years are transferable in some situations. Upon death, for example, they can be transferred to the surviving partner. Also for lease drivers and drivers who have lived abroad for years, it is now possible to transfer claim-free years. This way they do not lose their accumulated claim-free years. You can read more about this new regulation in our blog post.