A no-claims discount reduces your motor insurance premium based on the number of consecutive years you've gone without making a claim, with the discount typically increasing incrementally each additional claim-free year up to a maximum cap set by the insurer. Making a claim generally resets or reduces this accumulated discount, which is one reason some drivers choose to pay for minor damage out of pocket rather than filing a claim, weighing the immediate repair cost against the longer-term premium impact of losing accumulated no-claims history.
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