How To Claim NCB For New Car?
Updated On Oct 16, 2023
Read this article to find out how you can claim your No Claim Bonus for your new car.
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Driving safely is a moral obligation for all vehicle owners because it reduces the likelihood of accidents and loss. However, human error, breaking the law, or miscalculation while driving can all result in unfavourable outcomes. Insurance covers financial losses, but the driver is responsible for on-road risks. When no unfavourable events occur, the policyholder receives NCB. NCB stands for No Claim Bonus. This article will teach you everything you need to know about using the NCB of an old car insurance policy to lower the premium on a new car.
Significance of The No Claim Bonus For Car Insurance
A no-claim bonus is a discount offered by your car insurance provider on your premium. This is technically the largest discount you can get for your premium, and it reduces its cost significantly. If you do not make a claim on your car insurance for more than a year, you may be eligible for a no-claim bonus. Since the no-claim bonus is cumulative, you will receive a higher percentage of the discount for each year you do not file an insurance claim. This means that your car insurance premiums will be lower each year.
Claiming NCB On New Car
The car insurance policy is only used as a guideline for calculating the current year's NCB. As a result, even if a policyholder is no longer associated with the insurance company, he or she can continue to receive the benefit. Here's how you can use your old car's NCB to lower the premium on your new car's insurance policy -
Earning The No Claim Bonus On Old Car
One of the most effective ways to secure NCB is to drive your car carefully and not claim your car insurance for minor damages. While the entire cause behind investing in car insurance is to get financial assistance to repair damages to your car, you should make sure that you claim your car insurance only when the repair costs are extremely burdening to you. Claiming car insurance for minor repairs will eliminate the NCB component. Thus, avoid claiming insurance and secure the NCB which you can transfer to your new car insurance policy.
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Claim The NCB Component For New Car
You are now aware that the NCB increases with each consecutive year for a total of five claim-free years. The maximum discount you can receive on your car insurance policy is 50%. You will continue to receive a 50% discount after the sixth year until you file a claim or fail to renew the policy for more than 90 days. When you have accumulated a discount and want to purchase a new car, you can have the NCB transferred from your previous car insurance policy to the current one. This means you can continue to receive a 50% premium discount even if you buy a new car and a new policy.
Collect The NCB Certificate
If you want to transfer the NCB from your old car insurance to your new one, you must obtain the NCB certificate. This is a document that backs up your claim to have the NCB transferred to the new insurance policy. The following are the situations you should consider -
- Purchasing From Current Insurer: Since you are purchasing a new policy from your current insurer, you can request a copy of the NCB certificate for your records.
- Purchasing From Different Insurer: You must request that your old insurer issue the NCB transfer letter and the NCB certificate in order to receive a discount on your new car insurance policy from a different insurer.
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Since the No Claim Bonus is tied to the policyholder, you can transfer the NCB component from one policy to another. When you purchase a new car, you can transfer the No Claim Bonus Component to the new insurance policy to decrease the cost of your car insurance premium. When you buy a car insurance policy, make sure that it offers adequate coverage at an affordable price. Utilize the NCB to have the best discounts on your car insurance premium and drive safely.
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.