Transfer Your Old NCD to a New Car
Nabil Farhan· · 4 min readTable of contents
Buying a new car does not mean you have to start your NCD from 0%.
If you have built up a No Claim Discount (NCD) on your existing car, you may be able to transfer it to your new car and enjoy a lower insurance premium.
This guide explains how NCD works, who can transfer it and what you need to do before buying insurance for your new car.
What is NCD (No Claim Discount)?
NCD is a discount on your motor insurance premium based on your claim-free record.
For private cars, the NCD can increase each year up to a maximum of 55%.
| Claim-Free Period | NCD Rate |
|---|---|
| 1 year | 25% |
| 2 years | 30% |
| 3 years | 38.33% |
| 4 years | 45% |
| 5 years and above | 55% |
A 55% NCD means a 55% discount on the applicable base premium. It does not mean the final insurance price will automatically be 55% lower, as other factors and add-ons can affect the final premium.
Can You Transfer NCD to a New Car?
Yes. You can generally transfer your NCD from your old car to another car if the requirements are met.
The main conditions are:
- The old and new vehicles are under the same owner or policyholder
- The vehicles are in the same vehicle class, such as private car to private car
- The NCD is available for withdrawal or transfer
- There are no issues with claims or other insurer requirements
NCD cannot normally be transferred to another person’s car, including a family member’s car.
Do You Need to Cancel Your Old Insurance First?
Not necessarily.
If your old car’s insurance policy is still active, you can contact your insurer and request an NCD withdrawal or endorsement.
Once the NCD has been released from the old policy, it can be applied to the insurance policy for your new car, subject to the insurer’s requirements.
If you have already sold the old car, make sure the insurance policy is also handled properly. The buyer should not simply continue using the old owner’s insurance policy.
How to Transfer NCD to Your New Car
The process may vary between insurers, but it generally works like this:
1. Check your current NCD
Before buying insurance for your new car, check your current NCD.
You can use the BJAK NCD Checker to check your NCD using your vehicle registration number and NRIC.
2. Tell your insurer you want to transfer the NCD
When getting insurance for your new car, inform the insurer that you want to transfer the NCD from your existing vehicle.
You may need to provide the registration number of your old car.
3. Request NCD withdrawal if needed
If the old policy is still active, the insurer may need to process an NCD withdrawal or endorsement before the discount can be applied to the new car.
Your insurer will advise you on the required process and documents.
4. Apply the NCD to your new policy
Once the NCD has been released, it can be applied to your new car’s insurance policy, subject to the insurer’s approval and requirements.
Before making payment, check that the correct NCD rate appears on your quotation.
What Happens If You Don’t Transfer Your NCD?
If you do not use your existing NCD on your new car, the new policy may be issued without that discount.
For example, if your existing NCD is 55% but you do not transfer it, your new car may not receive the 55% discount.
This can result in a higher insurance premium.
Your NCD belongs to you as the policyholder, subject to the applicable rules. Selling your old car does not automatically mean you lose the NCD.
Can NCD Be Used on Two Cars at the Same Time?
No.
The same NCD cannot normally be applied to two vehicles at the same time.
If you have two cars, each vehicle needs its own insurance policy. Your existing NCD can generally be transferred to another eligible vehicle, but it cannot simply be duplicated across both policies.
Can NCD Be Transferred to a Family Member?
Generally, no.
NCD is linked to the policyholder’s claim-free record and cannot simply be transferred to another person’s vehicle.
For example, if you sell your car to your child, your NCD does not automatically move to your child’s insurance policy.
The buyer should arrange insurance under their own name.
How Much Can You Save by Transferring NCD?
The amount you save depends on the base premium of your new car.
For example, a 55% NCD can significantly reduce the applicable base premium. However, the final amount you pay can still vary depending on the insurer, vehicle, sum insured and optional add-ons.
That is why it is useful to compare the final insurance quotes after applying your NCD.
Conclusion
Buying a new car does not mean you have to start your NCD from 0%.
If your old car has built up an NCD, you may be able to transfer it to your new car, provided the ownership, vehicle class and insurer requirements are met.
For private cars, the NCD can reach 55% after five or more claim-free years.
Before buying your new insurance policy, check your NCD and tell the insurer that you want to transfer it. This can help you avoid paying a higher premium unnecessarily.
Frequently asked questions
Can I transfer my NCD from my old car to a new car?
Yes, generally you can, provided the new vehicle and policyholder meet the insurer’s requirements.
Can I transfer my NCD to another person?
No. NCD generally cannot be transferred to another person’s policy.
Can I transfer my NCD from a car to a motorcycle?
Generally, no. NCD transfer is subject to vehicle class, and car and motorcycle NCDs are treated differently.
Do I need to wait for my old insurance to expire?
No. If the old policy is still active, you can ask the insurer to process an NCD withdrawal or endorsement.
How do I check my NCD?
You can check your NCD using the BJAK NCD Checker before getting a quotation for your new car.
