How to Market a Catchphrase
Legal Matters on Promotional Advertisements for No Claims Discounts Firms: In the UK insurance industry, the phrase “no claims discount” (NCD) is a powerful marketing tool. It promises savings for drivers who avoid making claims, rewarding safe behavior with lower premiums. But while the concept is simple, the way it’s marketed can be anything but.
Insurers often use NCD as a headline benefit, suggesting significant reductions in cost. However, the actual discount varies widely between providers, and the terms can be complex. Some insurers offer up to 75% off, while others cap it at 30%. The discount may also be affected by the type of claim, fault status, or even the length of time with the insurer.
Marketing vs. Reality
The Competition and Markets Authority (CMA) and the Advertising Standards Authority (ASA) have raised concerns about how insurers present these discounts. In some cases, marketing materials have exaggerated the savings or failed to disclose key conditions. This has led to regulatory action and public scrutiny.
For example, in August 2024, the CMA issued updated guidance on reference pricing and discount claims. The move came after investigations revealed that some insurers were using misleading comparisons and inflated “original prices” to make their discounts appear more generous. You can read more about this on Lewis Silkin’s website.
Similarly, the ASA introduced changes to its advertising rules in May 2025 to reflect new consumer protection laws. These updates aimed to curb misleading advertising practices, including vague or deceptive discount claims. Details of these changes are available on the ASA’s official site.
Consumer Impact
For consumers, the lack of clarity around NCD can lead to confusion and disappointment. A driver may believe they’re entitled to a large discount, only to find that a minor claim or policy change has reduced or eliminated it. This undermines trust and can result in complaints or switching providers.
To address this, regulators have urged insurers to provide clearer explanations of how NCD works, including:
- The percentage range of discounts
- How claims affect the discount
- Whether the discount is protected or not
- How long it takes to build up the maximum discount
Comparing to Law Firm Marketing
Interestingly, the challenges faced by insurers in marketing NCD are not unlike those faced by law firms. Legal services must also be marketed with precision and compliance, especially when promoting benefits like “no win, no fee” or group litigation opportunities.
Law firms are regulated by the Solicitors Regulation Authority (SRA), which enforces strict rules around advertising. Misleading claims or hidden costs can result in fines and reputational damage. In fact, recent ASA rulings have targeted law firms for misleading group claim adverts, showing that the legal sector is under similar scrutiny.
To navigate these challenges, many law firms turn to third-party specialists like marketing for solicitors. These services help firms craft compliant, effective campaigns that attract clients without breaching advertising codes.
Lessons for the Insurance Sector
Insurers can learn from the legal sector’s approach to marketing. Transparency, clarity, and ethical messaging are not just regulatory requirements—they’re essential for building trust. Whether it’s a no claims discount or a legal service, consumers deserve honest information.
As the UK continues to tighten its consumer protection laws, insurers must adapt. That means reviewing marketing materials, training staff, and ensuring that every claim made in an advert can be backed up with facts.
The phrase “no claims discount” may sound simple, but its marketing is anything but. As regulators crack down on misleading practices, insurers must prioritize transparency and accuracy. By learning from other sectors—like law firms—and embracing ethical marketing, the industry can maintain consumer trust and avoid costly penalties.
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