Buying a new car or upgrading to the latest model is a dream of most Indians. In 2020, with a couple of new cars to be launched in the market, we believe that you would be looking to buy one too.
However, most people are concerned about the car insurance premiums are paperwork that comes along with the new purchase. But what if we tell you that you can reduce your new car insurance premiums based on your old policy? Yes, you read it right!
For those switching from an old car to a new car in 2020, this article will help you decrease the insurance premium charges of your new vehicle. But before that, let us understand what is no claim bonus in car insurance?
You can benefit from the NCB only if you have not made a single claim during the policy term. As a matter of fact, NCB is beneficial to you (the policyholder) and hence cannot be transferred to another person. Therefore, it can be retained when buying a new insurance plan for your new vehicle.
So, in case you have 50 percent NCB on your existing car insurance plan, then you can avail that much discount on premiums of your new policy. Consider the following two scenarios for a better understanding –
1 You have earned NCB on your old car. You later sold the car to buy a new one.
In this situation, the NCB earned on your previous policy can be retained even after you sell the car for buying a new one. All you have to do is transfer the car insurance plan of the old vehicle to the car insurance plan of the new one.
When making this transition, use the retained NCB to purchase a new car insurance coverage and avail significant discount on the premiums charged.
2 You have earned NCB on your existing car and are planning to buy a new car without selling the old one.
In this situation, you can transfer/sell your old car to a family member who becomes the new owner of the old car. After this, the NCB earned on that car can be retained and used to avail discount on the insurance premiums of the new vehicle.
Note that you cannot avail discounts on car insurance premiums of your new car based on your existing/old policy if the old vehicle is still under your name.
A Final Thought
No Claim Bonus is earned for every claim-free year during your policy term. It starts from 20 percent can go up to 50 percent over the five years. You must know that NCB is a benefit given to you (the policyholder) and not the insured vehicle.
In case you are looking for comprehensive coverage for your new car in 2020, browse Bajajcar insurance plans available on Finserv MARKETS. In fact, with us, you can also seek additional coverage on your existing policy that includes add-ons like zero depreciation cover, engine cover, and more.