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.