I’m joining the Motability scheme - how do I keep my no claims discount?

I'm joining the Motability scheme - should I cancel or suspend my current insurance policy to protect my NCD incase I become ineligible for the scheme and have to buy my own car? With recent Insurance increases. a 10 year NCD is going to be potentially a valuable discount.

Asked on 29 February 2024 by Gordon Robinson

Answered by Louise Thomas
Your no claims bonus (NCB) should be valid for up to 2 years after your policy expires. So if you choose to take out another policy during this time, you should keep your NCB. However, if you remain on the scheme for longer than this and decide to come back to a private policy, insurers aren’t obliged to honour your previous NCB.

However, if you do decide to leave the scheme after this time and buy your own car again, you could look at obtaining a claims history letter from the motability scheme. This will help you prove to an insurer if you have a claims-free history, or any claims you may have made, as well as the period of driving on the motability scheme. Lots of insurers will accept this as proof of your claims history which could help with your price, however it’s not guaranteed.
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