What is NCB in Motor Insurance?
2022-02-23 16:13:58Car insurance isn't just about protecting your car—it also rewards you for being a responsible car owner. Yes, you heard it right! If you don't make any insurance claims during the year, your insurance provider will reward you with a No Claim Bonus (NCB) for keeping your car in good shape. This bonus comes in the form of a discount, usually between 20-50%, on your next policy renewal.
But do you know that there is also an add-on through which you can save your NCB? If not, you arrived at the right place. In this blog, let's take a look into NCB protection in car insurance, how it works, and much more to get a better understanding.
What is a No Claim Bonus Protection Cover?
Let's understand NCB protection in simple terms:
Thus, a huge amount can be saved. Moreover, this cover applies to vehicles that are up to 10 years old, and the policyholder can use it unlimitedly (subject matter of insurance company) during the tenure of the policy.
What are the Benefits of Zero depreciation Car Insurance?
Here are the key zero depreciation car insurance benefits:
Without NCB Protection
Imagine you've had car insurance for three years and haven't made any claim. Because of this, you've earned a No Claim Bonus that gives you a 35% discount on your insurance premium.
But one day, you have a small accident and need to make a claim. Without NCB Protection, as soon as you make that claim, you lose your NCB. This means that, when it's time to renew your policy, you won't get that 35% discount anymore, and your premium will be higher.
With NCB Protection
Now, say you had purchased an NCB Protection cover when you first got your car insurance. You still have a 35% NCB after three claim-free years. Then you get into the same minor accident and have to make a claim.
In this situation, even though you made a claim, with NCB Protection your 35% NCB is safe. That still gets you a 35% discount on your premium when it's time to renew your policy as if you hadn't made any claim at all.
In simple terms, NCB Protection is like a safety net that keeps your discount safe, even if something goes wrong and you need to use your insurance. Without it, making a claim means you'd lose that discount.
Important Things You Should Know About NCB Protection Cover
- Renewing or Switching Insurance Companies: If you have an NCB Protection cover with your car insurance, you can keep your No Claim Bonus (NCB) when you renew your policy with the same insurance company. But if you want to switch to a different insurance company, you will not get benefits of NCB protection.
- Selling Your Car: When you sell your car, you can transfer the insurance policy to the buyer without losing your NCB. You can hold onto your NCB until you buy new insurance for another car, allowing you to continue getting discounts. Just remember to get the NCB retention letter from your current insurance provider.
- Filing a Claim: Normally, if you file a claim, you would lose your NCB and the discount it provides. But with NCB Protection, your NCB is protected, even if you make a claim.
- Losing Your NCB: You can lose your NCB if you don't renew your car insurance within 90 days after it expires. Also, if your insurance policy is canceled before it expires, you won't be able to keep your NCB.
Benefits of NCB Protection in Car Insurance
The NCB Protection cover is a great addition to your car insurance policy. Here's why:
- Keeps Your Discount: Even if you make a claim, this cover lets you keep your No Claim Bonus, so you can still get discounts on your insurance renewal.
- Saves You Money: Protecting your NCB means you save money on future insurance premiums, especially if you have a pricey car with higher premiums.
- Gives You Peace of Mind: It reassures you that a single accident won't take away the discounts you've earned for being a careful driver over the years.
Who Needs NCB Protection Cover?
Anyone who wants to keep their driving history safe and continue getting discounts on their car insurance should think about getting the NCB Protection cover. This is especially important for people with expensive cars since their insurance premiums are usually higher, and protecting their NCB can help them save a lot of money.
Conclusion
The No Claim Bonus Protection Cover is a valuable add-on for car insurance that helps you keep your bonus even after making a claim. It’s worth the extra cost because it can save you money on future renewals. Understanding how NCB works and how to protect it is key to maximizing your savings on car insurance.
How does NCB protection work?
NCB protection allows you to keep your No Claim Bonus even if you make a claim on your car insurance. Without this cover, making a claim would usually result in losing your NCB (except key loss protection).
What is the benefit of NCB in car insurance?
NCB gives you a discount on your car insurance premium when you renew your policy. The longer you go without making a claim, the bigger your discount.
Is it good to protect the No Claims Bonus?
Yes, it’s a good idea to protect your NCB because it helps you save money on future premiums, even if you need to file a claim.
How much NCB can I claim?
The amount of NCB you can claim depends on how many years you’ve gone without making a claim. It can range from 20% to 50% of your renewal premium.
Do I lose my NCB if I don't claim?
No, you don’t lose your NCB if you don’t make a claim. In fact, not making claims helps you build up your NCB over time.
How do I check my NCB policy?
You can check your NCB status by looking at your car insurance policy documents or contacting your insurance provider.
How to get proof of No Claims Bonus?
You can get proof of your NCB by requesting a No Claims Bonus certificate from your current insurer/broker when you’re switching to a new insurance provider or renewing your policy.
