Protect your NCD

Your No Claim Dis­count (NCD) for motor insur­ance will drop from 50% to 20% once you make a claim for an acci­dent? And it becomes 0% after two claims?

This, unfor­tu­nately, hap­pens to my hubby who met with an acci­dent earli­er this year. His motor insur­ance premi­um soared from $534 (after 50% NCD deduc­tion) to $918 after mak­ing a claim. He thought of chan­ging the insurer but only to dis­cov­er that it will cause him even more — up to $1500 instead.

Sur­pris­ingly, even after 10 years of driv­ing exper­i­ence, he is ignor­ant of that fact that he can pro­tect his NCD with just a small nom­in­al premi­um annu­ally (Well he should have asked me, shouldn’t he? Oh, Man!?). With the addi­tion­al pro­tec­tion, he will still enjoy 50% NCD after mak­ing an acci­dent claim, and thus the $1000 sav­ing over the next 3 years from the increase of in premi­um. The NCD will only reduce to 20%, if, touch wood, a second claim is made. So, check with your motor insurer now on pro­tect­ing your NCD.