A protected no claims discount is an optional paid extra that lets a driver make a limited number of claims within a set period without losing the no claims years they have built up. It shields the discount, not the underlying premium.
In one line: A protected no claims discount preserves earned discount years despite a set number of claims.
How a protected no claims discount works
Protection is bought as an add-on to a motor policy. It typically allows a defined number of fault claims, often two within a rolling period, before the accumulated no claims years start to fall.
A driver with 60% off a 900 GBP base premium pays 360 GBP. Without protection, a fault claim might cut the discount and lift next year's price sharply. With protection, the 60% entitlement stays intact after the claim.
Protection guards the years earned, but it does not freeze the base premium, which the insurer can still raise at renewal in response to a claim.
Protected no claims discount vs a standard no claims discount
A standard no claims discount can be reduced or lost after a fault claim. The protected version keeps the discount years in place up to an agreed claim limit, in return for an extra charge.
Because the base price can still rise, a protected discount limits how far the premium climbs rather than guaranteeing it stays the same.
Primary source: FCA: Insurance