No Claim Discount (NCD) is a form of discount offered by insurers to encourage insured drivers to drive safely. The rate will start accumulating after the first year of insurance.
The NCD rate will increase if no claim has been made under your policy for a year or more with the current/existing insurer. It can reach up to 55% and 25% of discounts for cars and motorcycles, respectively.
The accumulated value can help to lower your annual insurance premium.
Intend to transfer the existing NCD to a new car?
NCD is essential to help lower the annual insurance premium. Thus, you might want to consider transferring the existing NCD to a new car to be able to enjoy a lower premium.
The question is whether it is transferrable.
Yes, you can transfer the existing NCD to another car. Please note that it is only doable as long as the owner of both vehicles (existing and new) and the type of vehicle are the same. Examples: (car to car, motorcycle to motorcycle).
Should you transfer the existing NCD to a new car?
Yes. We encourage you to transfer the NCD to enable you to get a lower insurance premium. Refer to the below visual for examples of situations A and B for you to compare and understand how the transfer of NCD works.
Given the situation, you have a 5-year-old Myvi car. You are planning to get a new Honda City without selling your Myvi.
A: Here is what happens if you do not make an NCD transfer.
B: Here is what happens if you make an NCD transfer
By transferring the NCD rate, you can save thousands on your insurance premium.
How to transfer the NCD?
The steps are simple as below:
- Get a quote for the new car
- Inform your new insurer that you intend to transfer the NCD from the old car. You need to provide the car plate number.
- The NCD from the old car will be transferred to the new car
- You can enjoy lower insurance premiums for your new car!
Drive safely to keep your NCD
Your NCD is essential to lower your vehicle insurance premium.
Therefore, please drive safely and follow the traffic rule to avoid any untoward incidents on the road. Getting involved in an accident will only hurt your NCD rate.
Arm yourself with sufficient information about vehicles so you would know what is best for your vehicle. This includes the value of NCD, which can save help you save a lot on your insurance premium.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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