Benefits of No Claim Bonus Protection Add On Cover In Car Insurance
Published On Apr 12, 2021
This article mentions the benefits of a No Claim Bonus (NCB) Protection Add On Cover in car insurance. It begins by explaining what a NCB and NCB Protect Add On Cover is and then mentions the benefits in detail.
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In car insurance, a No Claim Bonus (NCB) refers to the discount that a car insurance holder receives on their insurance premiums for not making any claims for a single policy year. In other words it is an incentive for safe driving and the discounts for a single year are accumulated annually for the entire term of the policy. However, this incentive will come to be undone even if a person makes a single claim on their insurance policy and all earlier discounts would be lost.
But you need not worry about losing on your lower premiums for making a claim. Car insurance companies nowadays offer a NCB Protection Add On Cover that ensures that you can access your NCB discounts even after making a claim. Let us look at the benefits that this add on cover seeks to provide, more elaborately.
Benefits Of No Claim Bonus Protection Add On Cover In Car Insurance
The following are a list of points enumerating the benefit of having a No Claim Bonus Protection add on cover in car insurance -
As mentioned earlier, a NCB is a reward or incentive for safe driving and maintaining your car in perfect condition. One of the many benefits is availing rewards from your car insurance provider through your NCB by not making any claims for the total period of your policy tenure.
This is arguably the most lucrative benefit you can avail from a NCB Protect add on cover. Offering discounts against your premiums from the first year of your policy, this corresponds to a minimum of 20% discount on the first year, that accumulates to about 50% on the fifth year for not making any claims during the entire duration of so many years. You can avail this discount at the end of every policy year.
The NCB Protect Add On cover is a flexible add on option that can be included in your car insurance policy any time after you buy it. There is no need to worry if you don't have this feature as part of your insurance policy, you can always pay a nominal fee and include it at the time of car policy renewal to enjoy savings on your premiums.
What makes the NCB Protect add on cover so attractive is that it can be transferred from one car insurance provider to another in case you are thinking of changing your insurance policy or your car. Even if you buy a new insurance policy, do not be sad over losing all your NCB discounts from the last one in case you hadn't used it. It is easily portable from one insurance company to another, keeping intact the discounts that you had accumulated earlier.
These are in short the major benefits of having a NCB Protect Add on cover. It guarantees you savings on your car insurance policy even if you choose to buy a new car or an insurance cover. However, in order to enjoy these benefits you must remember to protect your car with a car insurance policy as it is the first step towards ensuring complete financial protection for yourself or third party liabilities in case of an accident.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.