No Claim Bonus – How to Save Big on Your Car Insurance
Did you know you could save up to 65% on your car insurance by simply using your No Claim Bonus (NCB)? Most buyers overlook this, and sadly, insurance agents rarely mention it—because the more you pay, the more commission they earn.
- A Expert once reduced his premium from ₹27,000 to ₹10,700 by transferring the NCB from his old car to a new Vehicle.
- The trick? Transferring the NCB, instead of blindly buying new insurance.
Don’t Forget Insurance While Negotiating a New Car Deal
Car buyers usually bargain hard on loan interest rates, free accessories, and discounts, but often ignore insurance.
- Insurance can be one of the most overpriced add-ons in a new car purchase.
- Always check if you can apply your existing NCB to the new policy.
Steps to Transfer Your No Claim Bonus
1. Selling your old car?
Never transfer your insurance to the buyer.
- Ensure ownership is updated in the RC book.
- Keep a photocopy of the new entry for future claims.
2. Get your NCB certificate
Send the delivery note to your insurer and request a No Claim Bonus certificate.
- You can also ask for a holding letter, valid for 3 years.
- Visiting the local office often speeds up the process.
3. Use it for your new car
Share the certificate with the new car dealer, and you’ll see a significant drop in premium.
- This simple step helps avoid unnecessary out-of-pocket expenses.
Explore All Options Before You Pay
Many manufacturer-backed insurance offers are cheaper than regular insurance quotes.
- In one example, Maruti 800 insurance was ₹4,800, while Maruti’s own plan was just ₹2,800.
- Always compare quotes before signing up.
If sticking with your current insurer:
- Visit them with your new car invoice and chassis number.
- They’ll apply your NCB, issue a cover note, and you’re ready for registration.
Consider Zero Depreciation Insurance
For premium vehicles, zero depreciation insurance is worth it.
- Such cars use costlier components, and basic insurance won’t cover full costs.
- One BHPian, Sam, had a positive experience using this policy when repairs were needed.
FAQ: Common No Claim Bonus Questions
Q: Haven’t sold your old car yet?
You can still buy the new one, but NCB applies from second year onward.
- Once you sell the old vehicle, request the NCB certificate.
- Apply it during the next renewal to save money.
Q: How do I maintain my NCB?
Avoid making small claims. If your stereo worth ₹5,000 gets stolen but you’re saving ₹9,000 on NCB, skip the claim.
- Driving cautiously and securing your car help preserve this bonus.
Q: Want to keep both cars?
Cancel the old car’s insurance and transfer the NCB to your new vehicle.
- Alternatively, transfer ownership to a family member and retain NCB benefits.
Q: What about ‘Free Insurance’ offers?
Negotiate for a cash discount instead and buy insurance independently.
- You can also use the NCB certificate during the next policy renewal.
Company Car Lease? You Can Still Keep the NCB
If your company car is being transferred to your name, you’re eligible to retain the NCB under Indian Motor Tariff GR 27(e).
- This requires a letter from your employer confirming exclusive use of the vehicle.
- It’s a smart move that saves you thousands on future premiums.
Final Thought
The No Claim Bonus is a powerful tool that every smart car buyer should leverage. Whether you’re buying your first car or upgrading to a premium model, don’t let this easy savings opportunity slip by.
