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No Claim Bonus - How Does It Save Your Insurance P...

27 January 2016, 03:07 PM

It is a general concern among vehicle buyers as to how much is the amount of the premium while purchasing an auto insurance. The premium for any insurance is set by the concerned company and it has to be paid by the customer whenever he/she avails the insurance for any damage or theft. There are a number of ways through which the insurance premiums can be minimised to null and among these, the most significant method is No Claim Bonus (NCB). People are eligible for this type of bonus if they have not claimed any insurance coverage on any type of damage during their last policy period. This simply means that if a person has insured his car in a certain year and does not avail any claim during the same year, then the next year they are eligible for a discount on their premium.

A car insurance covers all the damages occurring to the car in case of adversities or if the vehicle has been stolen. The auto insurance premium paid by the customers in case of availing the insurance can be hefty at times and might pinch their pockets too. Therefore, it is advised to not claim any benefits from the concerned insurer in case of small damaged and the same should be repaired through local mechanics. By doing such, people can ultimately become eligible for availing a no claim bonus and can reduce their premiums to a great extent. It is believed that by not claiming anything on the car for successive years might save up to 50 per cent of the premium money.

Few of the insurance companies might not also disclose this fact but people can also transfer NCB in case they purchase a new car. In case people are selling Hyundai used cars to purchase a new model of either Maruti cars or Honda cars or any other model, they should always keep in mind to retain the insurance policy from the old car on their own name. After that, they can simply ask the insurer to provide them with the no claim bonus certificate and then they can reserve the bonus on the new cars. It is also advised that while paying the premium, people should opt for a lower deductible as per their convenience and budget. Paying extra amount might leave the user in a dilemma; therefore, it is advised to choose the premium carefully so that the maximum benefit of auto insurance is availed.

The NCB is beneficial in reducing the premium cost to about a whopping 50 per cent when no claims are made in a series of years. In the initial years, this percentage remains between 20 -25 per cent but after 5-6 years of no claim, it is increased to 45-55 per cent. It is always recommended to choose among the most reasonable and advantageous car insurance. One can go through the internet or consult local dealers about the same and then compare the prices and benefits offered by different insurers.

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