3 Ways to Avoid Losing Out On Your NCB Even After an Accident

No claim bonus (NCB) is a kind of reward that the insurance company gives to the insured
individual for not making a claim on their four wheeler insurance policy during that policy
year. The no claim bonus can be anywhere from 20 percent to 50 percent. However, you
cannot claim a no-claim bonus until renewal of the policy after the first year. You start off
with a no claim bonus of 20 percent in the first year after renewal and it increases every year
that you do not make a claim to a maximum of 50 percent at the end of five no-claim years.
The key feature of a no claim bonus of four wheeler insurance is that the no claim bonus
belongs to you and not to your four-wheeler. For example, you buy a car in 2013 and sell it in
2015; you have accumulated a no claim bonus of 30 percent. If you buy a new car in 2016,
the no claim bonus of 30 percent transfers to your new car. A no claim bonus is a great way
to save on your premium; however, there is a chance of losing it if you get into an accident.
Here are 3 ways to avoid losing out on your NCB even after an accident:

1) Opt for a long term insurance instead of single year insurance- In the case of four
wheeler insurance, if you do not renew it at the end of the policy year, you could lose
your no claim bonus. Long term insurance is wherein you buy four wheeler insurance
for a few years at a time. This is more beneficial because you do not have to worry
about losing out on your no claim bonus in case you forget to renew the policy at the
end of the year.

2) Opt for a no claim bonus protector- When you are buying four-wheeler insurance,
it is important to know the inclusions and exclusions. Based on this, you can buy add-
ons to go with the insurance policy. One of these add-ons is the no claim bonus
protector. The no claim bonus protector protects the no claim bonus. It adds financial
protection in case of accidents or damage. If you have a no claim bonus protector and
even if you make a claim during that policy year, your no claim bonus will not be
affected.
 3) Get the other party to pay for the compensation.

A no claim bonus is incredibly helpful and it is very important to safeguard it so you can get
a discount on your four wheeler insurance premium. There are also some benefits of online
car insurance renewal if you feel like you cannot remember to renew the policy at the end
of the year. We hope this article was helpful in terms of no claim bonus and how to protect it
even after an accident. Good luck and drive safe!