A no claims discount, also known as a no claims bonus, is a discount that you can get on your car or home insurance if you don’t make a claim (making a claim is when you ask your insurance provider to pay for something for you).
Basically, if you go more than a year without asking your insurance provider to pay for something, they’ll be super happy with you as you won’t be costing them any money. To reward you and encourage you to keep going, they’ll usually reduce your insurance premium (the cost you have to pay upfront for your insurance).
Normally, the more years you go without making a claim, the bigger your discount will be.
When you’re umming and ahhing about which insurance provider to choose, make sure to take their no claims discounts into account as they’re all different. Some will let you keep building up your no claims bonus for up to 15 years, while others will cap the number of years you can build it up to just 5.