In today’s fast-paced world, having a vehicle has become a necessity. However, maintaining it involves reducing unwanted financial burdens requiring suitable automobile insurance. One good way to minimise these costs is using the No Claim Bonus (NCB) feature. This helps to maximise your savings if you have not claimed your insurance for a certain period. The insurance company offers an additional discount on the insured sum during renewals.
Read ahead to learn about practical ways to increase your savings with NCB and vehicle insurance online.
8 Smart Ways to Maximise Your Savings on No Claim Bonus and Online Vehicle Insurance
Cutting costs on vehicle insurance need not be difficult. Follow these valuable tips to maximise your NCB and your online car insurance buy:
- Understand the No Claim Bonus (NCB)
The No Claim Bonus is a reduction in premium given by insurance providers to policyholders who have not filed any claims in the last policy period. This reward generally begins at 20% after the initial year of claims-free driving and can rise to 50% over five successive years of claims-free driving.
It is important to note that the NCB applies only to the own damage component of the insured sum and not to the third-party liability component. Moreover, you can significantly cut down your premium payments if you keep a clean claims record.
- Transfer NCB When Changing Insurers
If you wish to change the insurance company, transfer your accrued NCB to the new one. NCB is policyholder-specific, not vehicle-specific so you can retain your discount. Producing evidence of your claim-free history to the new insurance company ensures that you earned NCB benefits, even under a different insurance company.
- Renew Policies on Time for Earning an NCB
It is essential to renew your policy on time to ensure continuity of coverage and benefits such as the NCB. Delayed renewal can result in policy lapse, causing the loss of built-up NCB and leaving your vehicle without insurance. Therefore, reminders of policy renewals can help prevent missed renewals, save your discounts, and ensure ongoing protection for your car.
- Adding up of Benefits of NCB
As the NCB benefit adds up each year and you do not make a claim, it adds up to your savings. In other words, the higher your NCB percentage, the lower your premium will be, making it essential to increase your savings. For instance, 50% of NCB in your car insurance account results in a 50% deduction in the premium paid.
- Opt for Higher Voluntary Deductibles
A deductible is the amount you pay out-of-pocket before your insurance takes effect. A higher voluntary deductible can reduce your premium because you assume an increased risk share. You only pay the voluntary deductible amount if you make a claim.
However, ensure the deductible is within your affordability in an accident. This way, you can adjust how much you will pay if you claim the insured sum.
- Install Anti-Theft Devices
Installing certified anti-theft equipment in your vehicle minimises theft risk, leaving your car a less threatening liability for the insurer. Most insurance providers typically provide reduced premiums for vehicles with approved anti-theft devices.
Installing these products increases your car’s safety and reduces insurance premiums. Insurance companies perceive vehicles with these devices as having a lower theft risk.
- Compare Insurance Plans Online
Checking out the insurance company’s website to evaluate each insurer’s provision is a good option to maximise your savings. This way, you can find the best policy plan that suits you at a reasonably competitive cost.
However, comparing the vehicle insurance policy, compare all the components of the plan and not just one premium and insured amount. Comparisons via the internet mean you will have made well-informed decisions by getting your value for money.
- Select Only Required Add-Ons
Insurance providers provide add-ons to increase your policy’s coverage, including engine protection, zero depreciation, and roadside assistance. Though these can be useful, they also cost you more premium. Therefore, evaluate your vehicle usage and conditions to decide which add-ons are required. Selecting only required add-ons prevents you from paying extra for coverage you may not need.
Final Thoughts
Overall, optimising savings on car insurance requires a tactful method involving knowledge about car insurance and leveraging the No Claim Bonus. Making wise decisions regarding policy add-ons and comparisons using online resources is also crucial. Adopting the tips above allows you to drive down your insurance costs while availing comprehensive protection. Safe driving protects you and helps maintain a claims-free record, enabling you to gain higher savings through the NCB.
