No Claim Discount (NCD) is a form of discount attached to and enjoyed by vehicle owners when renewing their insurance. Say that a car owner would like to purchase a new car or sell their old car, certainly, they would want to transfer their NCD to the new car in order to enjoy a lower insurance premium. Therefore, in this post, we share how you can transfer your NCD to another car.
Can NCD be transferred to another car?
Yes, you can transfer your NCD to the insurance policy of another car. This will help reduce the insurance premium of your new car.
However, there are two conditions that you need to fulfill before you can transfer your NCD:
Both cars must belong to the same owner
You must ensure that your old or existing car is your own and registered on your name and identity card number. Your new car must also be registered on your name and identity card number.
Both vehicles must be of the same vehicle type
NCD transfer is only applicable for vehicles of the same type. For instance, you can only transfer your car’s NCD to another car or transfer your motorcycle’s NCD to another motorcycle. This is because the NCD rates for both vehicle types are different. For your information, the maximum NCD rate for a private car is 55% while the maximum NCD rate for a private motorcycle is only 25%.
How to transfer NCD to another car
The process to transfer your NCD to another car is actually easy. The usual process is as follows:
- Get an insurance quotation for your new car
- Inform your insurer that you would like to transfer the NCD from your old car to your new car. Provide to the insurer the registration number of your old car
- Your insurer will then transfer the NCD to your new car
- Enjoy a lower insurance premium for your new car
Is there any document that you need to prepare to transfer NCD?
No, you do not need to prepare any document for the process. You simply need to inform your insurer of the registration number of your old vehicle.
Do you need to wait until your old car’s insurance expires?
No. If the insurance of your old car is still active, you only need to inform the insurance provider of your old car to remove the NCD from the car. In the insurance industry, the process of removing NCD is called “NCD Withdrawal.”
After the NCD’s withdrawal, you will need to pay the balance of the insurance for the old car based on the basic premium given that the NCD is no longer applicable. Upon the process completion, you can then ask your insurer to apply the NCD transferred from your old car to your new car.
In the event that your old car’s insurance has expired, you will need to inform the insurance provider to apply the NCD of your old car to your new car.
How much can you save with NCD’s transfer?
Depending on the NCD rate accumulated, you can save up to thousands of Ringgit if you transfer the NCD from your old car to your new car. To illustrate this, refer to the scenario below:
You own a Perodua Myvi that is 5 years old. You are planning to purchase a new Honda Civic without selling your Myvi.
Let us see how much you can save with and without the NCD transferred from your old Myvi to your new Civic.
As you can see in the illustration above, with NCD’s transfer, you can save up to thousands of Ringgit on the insurance of your new car.
Transfer your NCD to enjoy lower insurance premiums
As we have shown above, you can easily transfer the NCD of your car to another car that you also own. As you can save your money, we highly encourage you to transfer your NCD to another car so you can secure a lower insurance premium for your new car.
In addition, to enjoy even greater savings, you can renew your car insurance for both your old and new cars at Bjak. This is as you can compare up to 15 car insurance providers and get the insurance that offers you the most benefits at the best price. Make use of this platform and get your free car insurance quotations today.