Insurance companies in Britain and Australia try to help consumers reduce the costs of automobile insurance using the No Claims Discount or No Claims Bonus. The No Claims Discount or No Claims Bonus is a discount or reduction on insurance premiums that are applied when the insured has not made a claim on the insurance policy during a specific period of time. The no claim discount or bonus is earned in lots of time by not filing a claim. For each year that the driver has insurance on a car without making any claims, the higher the discount. Generally the no claims discount is a maximum of 5 years and as much as 60% to 75% discount. Some companies offer discounts for up 6-8 years of claims free driving.

No claims discounts cannot be shared between vehicles. The driver will need to earn the discount on each vehicle if the insurance company permits. Based on this, the answer to your questions is yes, it is true that you can only claim the no claims discount on one car. Many carriers will recognize the discount if the driver provides proof that the vehicle was insured claims free with another carrier, others will not. Another practice of some insurance companies is to offer an introductory bonus for the second car.

The Financial Services Authority (FSA) oversees the regulation of insurance.You may be able to find additional resources there. To shop for a quote on insurance in the United Kingdom through CarInsurance.com use our UK site. Simply, click on the link next to the British Flag, or follow this link to get a United Kingdom car insurance quote.