A No Claim Discount rewards you for not making a claim on your policy. Normally, for every year you don’t make a claim the insurer will reduce the premium you pay. No Claim Discounts range from one to five years.
Once you have reached five years of not making a claim, the insurer may give you the chance to protect your No Claim Discount by paying an extra premium. So you’ll now be able to make a claim without losing your No Claim Discount.