The No Claim Bonus (NCB) is one of the most important things to consider when renewing car insurance . If you don’t file any claims during the policy’s term, you will receive a discount on your premium. If you have been a responsible driver, and you have not been involved in accidents or claims, the NCB will be presented to you as part of your vehicle insurance. Insurance companies offer a variety of incentives for drivers who have excellent driving records.
What is a no-claim bonus on a car insurance policy
An online or offline car insurance provider will give a No Claim Bonus to an insured who has not made any claims in the past year against the policy. As a premium discount, a No Claim Bonus will increase over time. NCB discounts can be as low as 20% to 50% for own-damage insurance premiums. Sometimes, the NCB gets rewarded in addition to the insured sum, rather than a premium discount.
Car insurance with NCB: What does it mean?
One must renew insurance coverage after the policy expires. Insurers offer a No Claims Bonus as a reward for policyholders who have not made any claims in the past. They provide policyholders with a reduction or relief on the payment for the next policy. This is the start of the process.
No claim bonus is given to car insurance if no claim was made in the preceding policy year.
The insurer will offer a NCB discount to the insured as long as they don’t file any claims. If an insurance claim has been filed in the previous year, the no-claim bonus will be reset to zero. This applies even if the policyholder has not claimed for many years. This is how no-claim bonuses for car insurance work.
Calculating no-claim bonus
Car insurance’s no-claims bonus is calculated annually. If you keep your claim-free status intact for at least one year and have not made any claims during that year, you will get 20% off your next year’s premium. You will receive a 50% discount if you continue to make no claims for four more years. At that point, the premium for next year will be half the amount. Below is the tabular illustration of the No Claim Bonus.
|Claim your years of freeDOM||NCB Benefits|
|After 1 year||20%|
|After 2 years||25%|
|After completing 3 years||35%|
|After 4 years||45%|
|After 5 years||50%|
Since it is not immediately paid in cash, it is considered a cashless benefit. It will reduce your insurance premium. It varies from one insurance company to the next.
The discount amount will vary between insurers depending on factors such as driving record, age, gender, or gender. Additional discounts may be offered by some insurers if you purchase a car in their group coverage, or renew your policy after an accident-free period.
Car insurance: The advantages of NCB
The no-claim bonus is part of a comprehensive automobile insurance policy and offers many benefits to automobile owners, such as:
- Lower premium: The NCB allows you to receive a minimum 20% and maximum 50% discount on your car-insurance premium. Each year, you receive a percentage of the NCB discount without having to file a claim. This discount can be used to reduce your premium when you renew your insurance.
- No Claim Bonus andWin Rewards are considered evidence of responsible driving and maintaining the vehicle in good repair. The policyholder will earn NCB incentives by not filing any claims during his previous term.
- The policyholder receives the benefit:An important aspect of the no-claim bonus, is that the policyholder is the beneficiary of the benefit, and not the vehicle. The NCB remains with the policyholder as long as he continues to renew his car insurance policies. This applies regardless of whether he buys a new vehicle or sells an insured car. It cannot be transferred to a new owner.
- Transferable – If you decide to change your car, the No Claims Bonus can simply be transferred to the new car. You can also transfer the No Claim Bonus to another insurer if you choose to buy insurance from another provider. To transfer the no-claim bonus, you will need a claim bonus certificate issued by their previous insurer.
- Enhanced Savings:If all driving rules are followed, your no-claim rate for car insurance will increase. If you don’t have a claim within five years, you could get a massive discount up to 50% on your insurance premium when it comes time to renew.
Steps to get your NCB car insurance
To get a no-claim bonus on your car insurance policy, follow the steps below.
Step 1 :Go to the website of the insurance company and then go to the page for insurance renewal.
Step 2 Fill in your contact information including your name, phone number and email.
Step 3 Enter the information about your prior insurance policy, on which you are applying the no-claim bonus.
(Note: This no-claim bonus can only be used with comprehensive insurance policies. This benefit is not available for standalone or third-party insurance.
Step 4 – Fill in the details about your car. After you adjust your NCB, the premium amount will appear on the screen.
Step 5 Verify your information and make payment.
Driving is not just about being cautious, it’s about protecting yourself from the actions of others. It may not always be possible to avoid filing a claim. However, it is worth your time and effort to get the no-claim bonus in car insurance.
Disclaimer: This information is only for illustration purposes. Before concluding sales, please review the prospectus and policy words.