Month: March 2018
Ask any expert as to how to reduce car insurance premium, the advise is drive safely, avail NCB. No claim bonus or NCB is one of the major factors affecting car insurance premium. It is a discount that the vehicle owner gets if he doesnt make a claim the whole year. Percentage of bonus increases for every claim free year.
How is NCB Calculated
NCB can be availed for every claim free year of the vehicle. It is calculated on the own damage part of the insurance premium and not the third party insurance. Own damage (OD) premium forms a major component of comprehensive car insurance. One can get up to 50% discount on it.
For no claim during the previous year one gets 20% discount on OD, For no claim during two previous years discount is 25%, For no claim in three preceding years discount is 35%, for no claim during four previous years, discount is 35% and for four or more preceding claim free years, the discount is 50%.
Once a claim is made, the NCB becomes nil. The next premium is higher and the whole process of accumulating NCB will begin from zero. Some insurance companies offer an add-on cover to protect NCB
How to Avail NCB
The insurance company automatically includes the discount in the renewal notice. If the car insurance has lapsed and you renew it within the grace period of 90 days, you can still avail the NCB. If insurance is not renewed within the grace period, NCB lapses. There are certain things to take care if you are selling the car or changing the insurance company.
If you are changing the insurance company, make sure that you take the no-claim bonus certificate. Once you present it to the new insurance company, it will be implemented. It is important to take this proof as without this the discount cannot be availed.
No-claim bonus is offered to the person and cannot be transferred to the new owner if you are selling the car. Make sure that you get the no-claim bonus certificate from the insurance company before transferring the insurance. You can avail this benefit on your new car if you buy it within 3 years of selling the old car. The discount slab will remain the same as it was at the time of selling the old car.
Make the most of being a safe driver and avail the Bonus. It is the single most effective way of reducing car insurance premium.
You mght b surprised t w many factors g int car insurance prices. The obvious nes include the type of car nd coverages that you buy, but that’s just te beginning! The wy you use your car, where ou live, if you pay your bills on time and who u r an l b considered. It l boils dwn to this: wt s your probability of avng car accident nd tuall needing ur insurance company to pull throug fr you?
For insurance companies t stay afloat, th mut price ter premiums carefully wh being competitive. They invest in studies, performed t determine what types of people and situations re mr r less liky to lead t an insurance claim. Then, risk i determined wih affects car insurance prices. To make things mre interesting, dffrnt insurance companies ondr diffrnt factors. That i why it important t check with more than on company on price and insurance options.
Following r om f th factors involved nd why. The Car And Its Uses The type of car that yu want to insure plays a major part n car insurance prices. A mre expensive car wl prbbly b mor expensive t repair or replace thn es expensive car. Plus, ome cars are proven t b es susceptible t damage and occupant injury than others!
Where nd wn w you b driving? There ar mr chances fr damage f you drive n populated area versus rural community or small town. Larger cities naturally experience mre car theft, accidents and vandalism beaue there ar more people crowded together!
The “when” refers t distance nd time. Some people do quite bit of driving very day becuse tey mgt ha a long commute or th us their cars for business purposes. Those folks pose a greater risk thn say, fr instance, somon wo works frm home.
Who You Are I tnk we’ ll heard jokes but young, single males gettng t shaft n car insurance and, rightly so. The studies report tt drivers undr 25 ha higher chances f accidents nd tt ge for single people nd males too.
Finding the cheapest car insurance rate is simply a matter of comparison shopping. But how can you get the cheapest rate without spending hours on end talking to insurance agents? Here’s how …
Make a List
The first thing you need to do when it comes to getting the cheapest car insurance rate is to make a list of all the discounts you can get. Here are some of the biggest money savers:
1.Deductibles – Raising your insurance deductible from $200 to $500 can save you 30% on your insurance premium. Raising it to $1,000 could cut your premium in half.
2. Cars – The type of automobile you drive determines the insurance rate you pay. The difference in insuring an expensive sports car and an inexpensive family sedan can be as much as $1,000 a year.
3. Safety features and ant-theft devices – Most insurance companies will give you discounts for air bags, antilock brakes, and automatic seat belts. They will also give discounts if you have a burglar alarm or other anti-theft devices installed in your car.
Eliminate unnecessary coverage
Drop your medical coverage if you already have a medical insurance policy that covers you, and get rid of your towing coverage if you’re an AAA member.
Eliminate your collision coverage, comprehensive coverage, or both if you drive an older model car and the cost of your annual premium is the same as the value of your car.
Go Shopping
Shopping online is a quick and convenient way to shop for most anything, and it’s especially true when it comes to auto insurance. Rates for the same auto insurance coverage from different companies can vary as much as $1,000.
After you make your list of auto insurance discounts, fire up your computer and head to an online car insurance comparison site. Here you can get a number of quotes from top-rated insurance companies so you can compare quotes and choose the cheapest car insurance rate.
Visit or click on the following link for free car insurance quotes from A-rated companies to get the cheapest car insurance rates. You can get more insurance tips by checking out their “Articles” section.
The author, Brian Stevens, is a former insurance agent and financial consultant who has written a number of articles on how to get the cheapest car insurance rates.