No Claims Discount
The discount is usually reduced by two steps after
a claim. Whenever a claim is made under a motor policy, the discount
will always be affected unless your insurance company can recover
its costs from another party.
If your insurer can make a full recovery or is only stopped from
doing so by a knock-for-knock agreement, your no claim discount
may not be affected. Similarly, if you recover all your uninsured
losses (such as accidental damage excess) then your discount may
not be affected.
Sometimes your no claim discount will be reduced at policy renewal
time if a claim is expected to come in, or is still waiting to
be settled. The discount may be reinstated if your insurer subsequently
doesn't have to pay out under the policy.
