Introduction
Many drivers believe that when you renew early you’re able to save your NCD (No Claim Discount). But is this really true? This article explains NCD rules, when you can renew early, and how BJAK helps check premiums and NCD to ensure you don’t make a costly mistake when you’re comparing and purchasing your vehicle insurance online.
What Is NCD
NCD (No Claim Discount) is a premium discount based on the period you don’t make any insurance claims.
- The longer you remain claim-free → the higher the discount (up to 55%).
- NCD is reduced or lost if you make a claim.
Can You Renew Early?
- Technically, you can renew before your policy expires.
- However, NCD is calculated based on the expiry date of your current policy, not the renewal date.
- Renewing early does not automatically increase NCD, but it helps avoid gaps that could result in penalties.
- BJAK Tip: Early renewal is useful for financial planning or avoiding missed deadlines, but it does not increase NCD.
How to Maximize Your NCD
- Avoid making minor claims to preserve your NCD.
- Check your policy expiry date and plan early renewal to prevent gaps.
- Use BJAK Calculator to check your current NCD and estimated new premium.
- Compare panels using BJAK to ensure the best coverage that suits your budget.
Conclusion
When you renew early it does not save your NCD, but it maintains your NCD with each renewal when it has reached it’s maximum peak based on your vehicle type. The best approach is to check your current NCD using BJAK and compare panel prices to make yearly budgeting clear and save costs.
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