Don’t let go of your no-claim bonus

When you sell your car, the NCB stays with you as it is attached to you, and not the vehicle.

When you transfer your vehicle insurance to the buyer, you get to keep the best part of it for yourself — your no-claim bonus (NCB). This is the accumulated reward for your claim-free record.

This can go up to 40% and you get to encash it at renewal as a discount on your Own Damage premium.

When you sell your car, the NCB stays with you as it is attached to you, and not the vehicle. But it is not automatic.

You have to make a request in writing and get a letter confirming it.

When you write to your insurance company stating you have sold your car and they may transfer your insurance policy to the buyer, write another letter asking that your NCB be retained with you.

They will write back confirming the percentage of your NCB.

When you buy another car, you can give this letter to the insurance company and request that the NCB discount be applied to the premium.

This works in practice only if your old and new insurer are the same.

The good news though is that it applies even if your NCB was earned on a smaller car and the new car is a pricey one, with a heftier premium!

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