No Claim Discount-The Best Way to Reduce Your Car Insurance Premium
May 23rd, 2008 by Kaushik Adhikary
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With crude price hovering at $ 130 a barrel now,managing your day-to-day expenses are the prime factors that you need to look after. And car insurance premium is obviously one of the most irritating bills for common men. I suppose its now everybody’s concern to save as much as possible on their car insurance premium amid sky-rocketing gas or fuel prices.
And when you talk about savings on car insurance,getting No Claim Discount is certainly be a worthwhile consideration.Its a kind of incentive for good driving. No Claim Discount(NCD) is given in UK for every claim free year. After 4 claim free good-driving years, many insurers offer a safe-guard for your NCD by charging a small additional premium. So,whatever the accumulated premium is, you’ll continue to get NCD, no matter what would happen to your car.
How far your NCD will be protected is a debatable matter.Insurance companies may put a restriction over lodging number of claims.Its however up to the insurers discretion to put a cap on.You may choose to get rid of this,paying additional premium for reducing your premium.But then you’re at a risk of loosing your rewarded NCD fully, should any mishap happens to your car ‘at your fault’.
Some people tend to raise question of whether they need to provide the evidence of NCD from their previous insurer. O.K., you must have to furnish some documentary proofs such as your renewal notice/invitation from your existing insurers that must shows total NCD you’ve earned,the expiration of your current policy or previous any claim experience.
Here one important thing is that your new proposed insurer may not entertain you offering your deserved NCD if your produced documents are Certificate of Insurance,photocopies/faxes,Insurance Quotation,already used proof of NCD,endorsed letters from brokers or intermediary such as AA,AXA
Many people ask if their insurers still ready to offer no claim discount when they use a company car.Well,in that case you’ll have to produce a consent letter from your current employer confirming that you’re the sole owner of the company vehicle,your covering period should fall under your company car scheme,claim details if any occurred during this period and whether it settled on ‘fault’ or ‘no fault’ basis,you’ve come out of your company car scheme and you’re within 3 months deadline.
Your Protected NCD for life guarantees that you never are going to lose your life long No Claim Discount regardless of your number of claims provided that your policy remain in force.
