Car insurance: Four-wheelers are becoming more and more common in India. It is necessary that you obtain motor vehicle insurance in India prior to purchasing a car, as it is mandated in the country. Fortunately, NCB benefits are provided to policyholders by the majority of insurance companies.
The majority of Indians today don’t even know what NCB actually implies! In this article, we will tell you all you must know about it and how it impacts your Car insurance.
What is No Claim Bonus?
One of the benefits of not filing claims is the no-claim bonus. By offering a discount on the premium for the upcoming year, the insurance company gives the bonus. Your auto insurance price may be lowered by up to 50% if you are able to maintain a claim-free record for a number of years, as the NCB accumulates annually. You receive lower-cost auto insurance coverage as a result, saving you a tonne of money.
How does it affect your car insurance?
In spite of the fact that prices are rising for everything else around you, you have a unique advantage with your car insurance since you can choose to pay less for it. You may wonder how it functions.
It functions almost like an awards programme, actually. In the event that you have no claims during your first insurance year, you begin with a 20% NCB discount. That means that every year that you go two years without filing a claim, you continue to earn an extra 5%. After six years, this can decrease by approximately 50%. In summary, more driving skill results in better protection of your vehicle and ultimately better financial outcomes for you.
If your automobile insurance covers minor accidents or if you want to use it for a tyre burst, you can choose not to file a claim and cover the cost of the repairs yourself (but only if you think it’s practical!). and you might receive a No Claims Bonus throughout your auto insurance policy if you complete a full year without filing any claims. Sometimes paying for minor accidents yourself is better than filing for a claim, as in the long term, it may save you more money than what you initially spent on the repair.
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