Within India, the availability of four-wheelers is quickly growing. When purchasing a car in India, you should obtain car insurance. That being said, the good news is that most insurance companies offer NCB perks to their customers. What does NCB even mean? And how can you protect it? Keep reading to know the answers.
An overview of NCB in car insurance
Renewing your car insurance coverage after one year without a claim might earn you a No Claim Bonus (NCB). A car insurance No Claim Bonus is a deal you get when you update your policy. The No Claim Bonus is only given if you don’t file any claims during the term of your insurance coverage.
Insurance companies give you an NCB as a reward for driving safely and without accidents. In later years, the savings amount of your No Claim Bonus may go up. If you use the NCB for more than one insurance term, the price you get goes up. For up to 5 years, the price goes up every year when you don’t make a claim.
Benefits of No Claim Bonus on your car insurance premium
The main benefits of NCB are listed below:
- Reduced premium: NCB drastically lowers car insurance premiums, saving you money.
- Cost-effective renewals: Each claim-free year increases your NCB percentage, lowering renewal prices.
- Driving safety incentive: NCB encourages safe driving, decreasing accidents and claims.
- Transferable: You may transfer your NCB while switching insurance or buying a car. This flexibility allows you to keep the deal.
- Accumulates gradually: NCB increases yearly and may reach a 50% discount, offering long-term financial advantages.
- NCB protection: NCB protection allows certain claims without compromising your bonus, protecting your discount.
- Promotes claim avoidance: Since policyholders want to preserve their NCB, they pay for minor losses instead of filing small claims, stabilising rates.
- Increased savings for skilled drivers: Experienced drivers with NCB from numerous claim-free years might get lower premiums, making insurance less costly.
How can you protect your NCB?
Don’t make small claims if you don’t want to lose the no-claim bonus. Try to pay these kinds of claims out of your own money. The no-claim bonus security add-on is recommended if the claim is big and you want to keep the NCB you’ve earned. Adding a little premium might save you money if you make claims throughout the policy year.
When you purchase the no-claim bonus security benefit, you should consider how much different insurers charge for the extra coverage. Pick an insurer with lower rates to save money on payment and insurance costs. Select the add-on to safeguard your policy’s no-claim benefit even if you make claims.
Conclusion
Putting on an NCB Protect cap makes you feel better. The extra part stays the same as long as certain conditions are met during the policy time. Any claim made during the insurance time will not affect the renewal rate if you choose NCB safety cover.
