No-Claims Discount Calculator
A no-claims discount rewards drivers and policyholders who go consecutive years without an at-fault claim by cutting a percentage off the base premium. The percentage rises with each claim-free year, up to a cap each insurer sets independently. Because there is no universal government scale, the discount you enter should be the one quoted in your renewal documents. This calculator applies the discount to the base premium, then shows the discounted premium you pay and the cash amount you save, so you can compare years, insurers, or the effect of a claim on your bonus.
No-claims discount formula
Discounted premium = base premium * (1 - discount % / 100)
Amount saved = base premium - discounted premium
Total payable = discounted premium + fixed fees and taxes
Effective discount = (1 - total payable / (base premium + fees)) * 100
The discount applies only to the base premium. Fixed fees and insurance taxes are added afterwards, so the effective discount on the total bill is smaller than the headline NCD percentage whenever fees are non-zero.
About no-claims discounts
- Discounts typically increase each claim-free year and cap at a maximum the insurer chooses.
- Protected no-claims cover lets you make a limited number of claims without losing your accumulated bonus.
- The discount is normally applied to the risk premium before fixed fees and premium tax.
- A no-claims discount is not transferable as cash; it reduces only your renewal premium with that insurer.
- There is no government-mandated scale, so always use the percentage from your own renewal notice.
No-claims discount: frequently asked questions
What is a no-claims discount?
A no-claims discount (NCD), also called a no-claims bonus, is a reduction insurers apply to your premium for each consecutive year you do not make an at-fault claim. The discount percentage typically rises with each claim-free year up to a maximum set by the insurer. There is no government-fixed scale, so the percentages here are user-editable.
How is the discounted premium calculated?
The discounted premium is the base premium multiplied by one minus the discount fraction. A 60 percent NCD on a $1,000 base premium gives 1,000 times (1 minus 0.60), which is $400. The saving is the base premium minus the discounted premium, here $600.
Does the discount apply before or after taxes and fees?
It depends on the insurer and jurisdiction. Many apply the NCD to the risk premium before adding fixed policy fees and insurance premium taxes. This calculator applies the discount to the base premium you enter, so enter the figure your insurer discounts against for an exact result.
What happens to my discount if I make a claim?
An at-fault claim usually reduces your accumulated NCD by a set number of years at renewal unless you have purchased protected no-claims cover. The size of the step-back varies by insurer. This tool models a single discount percentage; enter your post-claim percentage to see the effect.
Official sources
- U.S. National Association of Insurance Commissioners: Auto Insurance consumer guide.
- U.S. Federal Trade Commission: Auto Insurance Basics.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.