Rating 1 and No Claims Discount (NCD) explained
Be rewarded for safe driving.
What is No Claims Discount (NCD)?
No Claims Discount (NCD), also known as No Claims Bonus or NCB by other insurers, is a scale used to reward safe drivers with a discount on car insurance premiums.
Your NCD is calculated based on your years of claim-free driving experience. For each year that you don't make a claim, you receive an additional discount on your insurance premiums, up to a maximum of 5 years.
What is Rating 1?
Rating 1 is assigned to drivers who have achieved the maximum NCD discount.
Generally, ratings start at 6, then reduces by one for every consecutive year you don't make a claim, until you reach Rating 1.
The lower your rating, the higher your discount.
How do I know what my rating is?
If you are currently or have previously been insured, your policy should have this detail.
If you have no car insurance history, insurers are likely to look at your driving record to decide on your rating.
Each insurer is different, so speak to them to find out what rating they will give you.
I already have Rating 1. Will this change if I switch policies?
If you already have Rating 1, you can protect this rating by selecting NCD protection when you buy Australia Post's comprehensive car insurance. This entitles you to one car insurance claim for every 12-month period of your policy, or up to 2 claims in 3 years without affecting your Rating 1.
Without NCD protection, your NCD will be reduced by 2 years for every claim and your premiums may increase accordingly.
Your rating or NCD is not affected if you make a claim for window glass only, or if you're involved in a collision where the other driver is entirely at fault.
Before buying any car insurance, make sure you read the Product Disclosure Statement for policy details and any conditions that apply.