How You Can Protect Your Vehicles’ NCB
Just like term insurance, even vehicles have NCB’s. As you are well aware that vehicle insurance; whether bike or car lasts only for a year. So if you have avoided accidents or damage to your vehicle and not made any auto insurance claim at the end of the insurance term, your insurance company will reward you with a No Claim Bonus. This will lighten the load on premium payments for the next year. A no claim bonus is usually a discount on the premium amount. The longer you don’t make a claim on your motor insurance, the more discount you get. With the renewal of your policy every year, the discount on premium increases. So every year when you renew your insurance you get a discount on your premium, however, there is a 50% cap on NCB, which means the maximum discount you can get on your premium is 50%.
No matter what type of vehicle you have, the NCB will always start from a 20% discount and will increase either by a 5% or 10% discount every year provided no claims are made.
While the simplest way to protect your NCB is by driving or riding safely, there are other options or ways you can protect your NCB. Here are a few:
By getting an NCB Protector add-on: With an NCB protector, certain claims made by a vehicle owner up to a certain limit will not impact the NCB at all. In other words, you can make a certain number of claim up to a predefined limit without it affecting the annual discount you get through NCB. You can avail this add-on for a very reasonable premium amount.
Consider taking out a Windshield protector add-on: Now you may wonder what is the use of taking out an insurance just to protect your windshield when you have insurance for your whole car? Well, the answer is simple. Your windshield is the very delicate and is the first thing to get damaged in an accident. With a windshield protector add-on, you won’t have to make a claim on your insurance and ruin your NCB. For just a small additional amount you can instead use the windshield add-on to pay for the replacement of your broken windshield.
Maintenance: Now, if you don’t want to pay for the additional add-ons, you don’t have to. But you can still keep your NCB going strong by maintaining your vehicle. Getting it serviced regularly and not making petty claims is one way of doing that. If you damage your vehicle, and can afford the cost for repairs, it’s advisable to pay the bill yourself rather than get insurance to cover it. Making petty claims could hurt your NCB and leave you paying the same premium for years when instead you can pay for small repairs and keep your NCB intact.
Remember, a NCB can net you a huge reduction on your yearly auto insurance premium. Why miss out on this opportunity when you can be careful or purchase add-ons for a reasonable amount and reap the benefits of not making a claim every year. Save your claims for situations where the amount needed to cover damages are very high.