Important Tips on Car Insurance Renewal and NCB

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Important Tips on Car Insurance Renewal and NCB

Hello Friends, Welcome to School4Seo.

Today we will talk on Car Insurance and trying to help simplify the Car Insurance Concepts. Hope this will save your not only money also helps to get best insurance for your car. Let's go.

NCB on your Car Insurance

NCB stands for No Claim Bonus is actually a discount it's not a bonus. It's a discount that your get on your insurance premium for not claiming damage from an insurance company.

Let's take an example:

Let's say you not made any claim last year on your policy, then your get 20% discount on next year Car Insurance premium. The more you don't claim, the more the percentage on your car premium increases. This is how its work.

  • You will get 20% discount for 1 claim free year
  • Get 25% discount on 2 claim free years
  • 35% discount for 3 years
  • 45% discount for 4 years
  • and 50% % discount for 5 years

So you can see that you can save ton of money on your insurance and insurance company are also happy that you haven't claimed and everyone wins.

Can you lose this NCB or Discount?

Absolutely you can, You make even a single claim and your NCB or Discount percentage is set to zero again. It's just like a video game where you failed in a level 4, you don't start from level 3 or 4, you need to start again from level 1.

Let's say you didn't claim for 3 years and now you are entitled for the good 35% discount, you make one claim and you are starting right from the beginning at 0% discount, your entire cycle will start again, you need to start with 0% then 20%, 25% and it will again take another 3 years to get to the same level of discount.

There is another way to lose your NCB or Discount, this is simply to miss the deadline of your renewal by more than 90 days. More the 90 days of your renewal, you expired your Car Insurance policy, you forget to renew, you lose your NCB. So this one is really silly guys don't do this at all.

What Happens when you change your Insurance Company?

Let say you were with an insurance company A and now you moved your Car Insurance with insurance company B. This one really simple and its really helpful. Your NCB entitlement means Discount percentage entitlement can be transferred from one company to another company which means if you are getting a 25% discount this year and entitle to getting 35% next year and the mean while you change your insurance company A to company B, you will still get 35% discount. This discount is standard across all insurance company and portable, it can be 1 to 2.

How to GET THE MOST out of your NCB?

First Way: As you just understood, you will lose your complete NCB even if you make a single claim. A simple suggestion is to avoid making claims for small repairs. A very easy or simple way to do this is to follow simple thumb rule. Avoid any claim where the expenses is less than Rs.5000-6000. and that is the less money which can you save with your NCB or Discount percentage.

Second Way: The second way to get the most out of your NCB is the most people not aware about the Gem of the NCB, the best part is it's linked with you not with your car.

Let me explain what it's mean. If you sell your old car and buy a new one, you can carry forward your NCB or Discount percentage. Let see if you buy a new car which has premium of Rs.40,000 and let say you old car has 50% entitled met on NCB. You can get your new car now by transferring that NCB and paying only Rs.20,000. All you need is simply a NCB certificate. This NCB certificate is valid for 3 years, so you could buy your new car within 3 years and still not lose the entitlement.

That's all Folks. This is all about NCB, Hope this is useful and it helps you saving money on your car insurance premium. If you have any question about your car insurance then please posted on the comment box. We will answer or reply. If you find this is helpful please share with your dear ones.

Thanks for reading