How to Use No Claim Bonus while Buying a New Car - Make Money Online

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How to Use No Claim Bonus while Buying a New Car

It is easier to choose the model of your car, but it is difficult to choose the right Car Insurance policy - especially when you are buying your second car or buying a car in exchange foryour old car. In this respect, No Claim Bonus or NCB plays a vital role. Many people are unaware of its importance, and tend to neglect its attributes. It is thus crucial to first understand what an NCB is and why you should read the documents of yourCar Insurance Online thoroughly!

What is a No Claim Bonus?

When a policy holder does not claim any money during the term of the Car Insurance then, the insurer is liable to give a NCB to the policy holder. Ranging from 20% to 50% on the damage premium, the No Claim Bonus is saved over the entire tenure of the Car Insurance policy.

Using your No Claim Bonus

Rather than claiming the money, it is better to utilize it strategically when you are renewing your policy. The NCB can be applied while buying your new insurance policy where you get a discount on the premium of your new Car Insurance. The following method tells you how to utilize your No Claim Bonus while buying a new car.

Claim your NCB – Sell Your Old Car

You should ideally sell your old car, which has aNo Claim Bonus to a dealer so that when you buy a new car the NCB can betransferred. Such sales come with sales deed which accelerates the claim for NCB

Apply For NCB Certificate

The car owner needs to send a document (either email or letter) to the Car Insurance Company informing the sale of the old car, and requesting to transfer the No Claim Bonus to the new car if bought in exchange or otherwise. These days online car insurance assistance has been significantly upgraded and getting a NCB Certificate is not much of a hazard. All documents that authenticate the selling of the old car and the new one should be sent to the insurance company. These documents include the copy of the sale of the old car, the new car booking documents, the document of the Car Insurance of the old car. Within two or three working days, the NCB Certificate is received by the policy holder. Based on this, the discount of the premium of the new Car Insurance policy can be applied.

It must also be noted that the transfer of the No Claim Bonus for the new car does not essentially have to be from the same insurer. It is thus safe to say that getting a NCB certificate in place just when you need it, might be the wisest thing to do especially while buying your next set of wheels!
How to Use No Claim Bonus while Buying a New Car How to Use No Claim Bonus while Buying a New Car Reviewed by RAWAT on 10:19 PM Rating: 5