No Claim Bonus (NCB) is one of the largest savings on auto insurance, awarded after five years of continuous coverage without a claim. Up to 50% of the premium amount may be discounted. 

If you don’t file a claim throughout the policy, your premium payments will be reduced, known as a non-claims bonus or NCB. An NCB is given to you by your car insurance company if you have been a good driver and have consistently avoided claims and accidents. In reality, insurer offer bonuses to drivers with clean histories.

The no-claim bonus in car insurance is shown as a percentage reduction on the car owner’s insurance rate. If NCB covers you, you can receive a 20–50% Own Damage Premium discount. Your four-wheeler insurance premium (OD Premium) might be reduced with NCB. 

NCB on car insurance

In terms of protecting the car, car insurance also honours you as a careful driver. You did read correctly. You will receive a no-claims bonus (NCB) for keeping your automobile safe if your insurance provider receives no claims for a specific year. You may apply a 20–50% discount on your next renewal if you have a no-claim incentive.

Benefits of an NCB in insurance

When an NCB in insurance is included in a driver’s insurance coverage, they have various advantages. Here are a few of them:

•  Better savings

If you abide by the set guidelines, the percentage of NCB on car insurance will steadily rise. Every time their policy renews, drivers who have yet to file a claim for five years stand to receive more significant premium discounts.

• Positive rewards

As previously indicated, an NCB functions essentially as a reward offered to conscientious drivers who can keep their insured vehicle in good working order. In this instance, by not filing claims throughout the previous policy tenure term, the policyholder benefits from NCB.

• Decreased rates

You can save anywhere from 20% to 50% on your car insurance premium by using a no-claim bonus in car insurance. Every claim-free year, policyholders receive a percentage of the discount, which can help lower the total amount of premiums you have to pay when it comes time to renew.

Keep the NCB when buying a new car

As you know, the NCB rises after five years without a claim. You can receive a maximum 50% discount on your car insurance. You will keep getting a 50% discount after the sixth year until you file a claim or forget to renew the policy for over 90 days. 

You can move the NCB from your previous car insurance policy to the present one if you want to purchase a new vehicle and accrue a discount. This suggests that you will still be eligible for a 50% premium cut even if you buy a new car and new insurance.

NCB certificate on car insurance

You must obtain the NCB certificate to transfer your old car insurance’s NCB to your new policy. This document substantiates your request to move the NCB to the new insurance plan. In this instance, two possible outcomes exist:

When you purchase a new policy from your present insurance provider

You are entitled to a copy of the NCB certificate for your records as you buy a new policy from your current provider.

How is the NCB protect add-on used?

The most significant savings available for car insurance is likely NCB. Furthermore, policyholders may lose their hard-earned NCB due to a few different circumstances. It is essential to be cautious of these elements and make every effort to keep the NCB. 

However, one may need to file a claim in an unpleasant incident. The main objective of insurance is to provide financial coverage. The NCB protect enters the picture at this point. In the event of a claim, the NCB is kept from resetting.

An insurance provider may limit the number of claims that can be made with the NCB Protect add-on. Insurer typically allow up to one own damage claim per policy period. Individuals who have a high volume of claims should think about selecting this car insurance option.

Easy switch to a different car or insurer

If the policyholder wishes to change cars, an NCB’s straightforward transferability to another vehicle is one of its advantages. In addition, it permits you to transfer insurers if you choose to buy insurance from a different provider entirely.

Provided to policyholders, not vehicles

It’s important to remember that NCBs are awarded to the policyholder or car owner rather than the actual vehicle. This implies that if the vehicle owner constantly renews their car insurance, the NCB will remain in place, whether they sell their insured vehicle or buy a new one. It is also non-transferable to new car owners.