No Claim Discount (NCD)

No Claim Discount, or NCD, is a discount given by insurers when policyholders make no claims during the policy period. It can lower the premium at renewal and often grows with each claim-free year. If a claim is made, some or all of the NCD may be lost, which can raise the renewal premium. NCD is commonly found in motor insurance and may also apply to other policies such as home insurance.

If you do not make insurance claims for a while, the insurer may reward you with a cheaper premium next time. That reward is called NCD.