Discount ? Any ?
As Malaysians, the signage that we always look for when we are shopping, be it is at the “Pasar Malam”, the supermarket, restaurants or even when we are buying a property, it is the “%” sign which means DISCOUNT!
Is there any DISCOUNT available for buying car insurance? You bet! If you are a good driver and your claims experience is good. What do I mean by that? Insurance is there for us in case of emergencies or unavoidable accidents. We do not wish that to happen ourselves, it is both causing hassles and distress to us. Therefore we should try our very best to take good care of both ourselves and our car at all time. Good news is insurance companies are encouraging us to do so by offering the No Claim Discount (NCD). It goes by yearly basis whereby if you do not have a claim for the year, you are entitled for a discount when your car insurance is due for renewal the next year, and if you do not have a claim next year, your NCD accumulates, and you will get an even bigger discount on the year after. The same goes on until you reach the maximum of NCD of 55%, which is more than half of the premium you would have paid! Interesting eh? Table below shows the exact NCD rate you may accumulate for your car insurance on every consecutive years without a claim.
Then you may ask, what if I decides to change my car, do I enjoy the same NCD I am enjoying currently for my new car? Yes and no, NCD cannot be duplicated but it may be transferred. Say I am enjoying 55% on my old car, I do not get 55% NCD on my new car automatically just because of that. I will have to transfer the NCD from my old car to my new car and that leaves my old car without NCD, reset into zero. It does not matter much if I have already sold/trade-in my old car but if I’s still keeping my old car, I will still save a bit since the old car sum assured would be lower compared to my new car, thus a greater amount of saving on the 55% NCD.
Another point to take note for NCD, NCD follows the registered owner of the vehicle. If you decide to transfer the ownership of your vehicle to your son or your wife one fine day, the NCD will be reset to zero and your son or your wife would have to accumulate them again by the years.
Is there any DISCOUNT available for buying car insurance? You bet! If you are a good driver and your claims experience is good. What do I mean by that? Insurance is there for us in case of emergencies or unavoidable accidents. We do not wish that to happen ourselves, it is both causing hassles and distress to us. Therefore we should try our very best to take good care of both ourselves and our car at all time. Good news is insurance companies are encouraging us to do so by offering the No Claim Discount (NCD). It goes by yearly basis whereby if you do not have a claim for the year, you are entitled for a discount when your car insurance is due for renewal the next year, and if you do not have a claim next year, your NCD accumulates, and you will get an even bigger discount on the year after. The same goes on until you reach the maximum of NCD of 55%, which is more than half of the premium you would have paid! Interesting eh? Table below shows the exact NCD rate you may accumulate for your car insurance on every consecutive years without a claim.
Then you may ask, what if I decides to change my car, do I enjoy the same NCD I am enjoying currently for my new car? Yes and no, NCD cannot be duplicated but it may be transferred. Say I am enjoying 55% on my old car, I do not get 55% NCD on my new car automatically just because of that. I will have to transfer the NCD from my old car to my new car and that leaves my old car without NCD, reset into zero. It does not matter much if I have already sold/trade-in my old car but if I’s still keeping my old car, I will still save a bit since the old car sum assured would be lower compared to my new car, thus a greater amount of saving on the 55% NCD.
Another point to take note for NCD, NCD follows the registered owner of the vehicle. If you decide to transfer the ownership of your vehicle to your son or your wife one fine day, the NCD will be reset to zero and your son or your wife would have to accumulate them again by the years.