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Car Insurance Comparison Savings with No-Claim Discount

Written by Huma

Car Insurance Comparison Savings with No-Claim Discount

Car Insurance Comparison Savings with no-claim discount is a unique and effective way to secure better deals in the insurance market.

No Claims Certificate is a certificate that a policyholder receives if they have not made a claim in the recent past. Based on this certificate, the policyholder could get a discount on the renewal of their motor insurance policy.

According to the UAE auto insurance regulation policyholders who make zero claims get rewarded. Zero claims mean that the policyholder has been an exemplary driver, and their reward is a discount on their premium.

Drivers of fleet auto vehicles, normal cars, or any motorcycles all have vague knowledge about the no-claim bonus, which leads them to miss out on the spectacular discounts and packages of the auto insurance.

Thus, if you want to switch your insurance provider then you can ask your previous insurer to provide you the No Claims Certificate and then you can present it to get discounts from your new car insurance company.

Many people don’t realize the importance of no claims discounts. Still, it is one of the most common discounts available for the motor insurance premium, and it is an excellent way of saving your Money.

Noticing the importance of how, with the help of car insurance compassion savings, you can get good NCD discount packages, we have presented the much-needed discussion.

How no claims certificate can save your money?

No claims bonus is a benefit that adds up every year that you remain claim-free.

This means the more time you remain to claim for free, the more discount you will get.

The car insurance comparison savings highlight that a policyholder’s maximum discount on NCB is 20%.

  1. According to UAE Insurance Authority, if you are claim-free for a period of 1-3 years then you are eligible for a 10%-20% discount on your premium once you go for the renewal of your car insurance policy.
  2. Some insurers may offer discounts above 20% if you have an excellent driving record.
  3. For example, some companies offer a 30% discount on your premium if you have not filed a claim for 5 years or more.

Therefore, this means driving carefully has some financial advantages too along with the other benefits.

However, these discounts do not stand alone, they depend upon several other factors too like policyholder’s age, occupation, customer history, etc.

Will making a Claim cancel your NCB?

This can be a confusing situation for policyholders who have had a clean record for some time and due to some unforeseen events, they had to file a claim.

They may think that now their NCB will be canceled as they’ve made a claim recently.

Actually, the real situation is a bit different.

  1. At the time of renewal, the motor insurance companies will just alleviate the percentage of discount that the policyholder is supposed to get as a result of no claims bonus.
  2. As there is not a particular rule, so the reduction in discount will vary from insurer to insurer.
  3. The new discount and premium will be calculated based on the policies of your particular motor insurance company.

Thus, even if you had to make a claim because of some unpredictable event, your discount will not be canceled or nullified. Its percentage may reduce but it will not become zero.

If you are still confused or want to know the value of the reduction in your discount, you can always contact your insurer.

Therefore, they will guide you better and will also let you know about the other car insurance comparison savings options.

Can No Claims Certificate be transferred?

The No Claims Certificate is associated with the driver, not the vehicle. You can still get a No Claims Certificate if you switch your vehicle.

No Claims Certificate is issued for the insured vehicles only, and it cannot be

transferred to someone else.

The NCB can be transferred in case you switch insurance companies. When you plan on switching your insurance company, ask your previous insurer to provide you No Claims Certificate.

This way, your NCB will be transferred to your new insurance company, and you can get lower premiums.

You do not have to pay extra Money to get the No Claims Certificate from your insurer.

Hence, the UAE insurance authority has set these rules and regulations. You are not bound to invest further.

How Car Insurance Comparison Savings can make No Claims Discount Protection more helpful?

No Claims Discount protection is a special and helpful feature with NCB. This feature is for people who worry that their NCB will be nullified once they claim the future.

This protection feature is an add-on, and you can get it at an additional premium.

This feature safeguards your No Claims Discount if you file claims in the coming years. But this facility comes with several limitations.

The rules vary from insurer to insurer regarding No Claims Discount Protection.

Some companies may allow you to keep your discount even after you’ve made multiple claims (up to a pre-decided amount), while others may limit the number of at-fault claims.

Thus, your insurance premium will increase with time, as the claims will appear on your insurance history.

If the policyholder gets involved in an accident caused by the policyholder, this feature will not apply. A police report of the accident will be required to get this protection.

FAQ’s

Who is eligible to buy car insurance plans in the UAE?

Every car owner with valid vehicle registration documents, driving licence or permit, and residency/citizenship documents can buy car insurance plans in the UAE. 

What is a comprehensive car insurance plan?

A comprehensive car insurance plan covers third-party liability, damages to the policyholder’s vehicle, and fire and theft damages as well.

How can I lower my car insurance rates?

Car Insurance quotes will depend on several pricing factors, like your driving history, your car, where you live and other factors. One of the best ways to save on car insurance is by getting car insurance discounts.

Conclusion:

Driving safely can help you save a lot of Money Money. Nobody wants to invest in motor insurance and then not benefit from it.

Car comparison savings on No Claims Discounts can help you save a lot of your hard-earned MoneyMoney, and it does not even require much effort.

You only need to drive safely and not file claims for small things. If you pay for small damage repairs and do not file claims, you can benefit from it on the renewal of your insurance policy.

You can always file for claims in case of heavy damages. No Claims Discounts vary from company to company.

The rate of discounts you get based on NCB is also different for different motor insurance companies.

While choosing the insurance company or switching from your current company, it should be kept in mind that not all motor insurance companies provide the same benefits as NCB.

Inquiring about all these features beforehand is advisable instead of facing disappointment after committing.

The No Claims Bonus is one of the best and most common ways of saving MoneyMoney on motor insurance.

This is a reward for driving safely from your car insurance company. This service was offered in the first place to encourage safe driving without getting into mishaps and accidents.

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Originally published Dec 07, 2019 12:01:35 PM, updated Jun 28, 2022

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