Best Way to Retain Your No Claim Bonus Even After You Sell the Car

Selling your car is a process of finding the perfect buyer, settling for the perfect price and then sending your car away while retaining the memories. You don’t have your car now, but wouldn’t it be awesome it be great if you still got the no – claim bonus for the car’s insurance policy.
The NCB - no claim bonus is a bonus which the insurance company gives to the insured when they do not claim any cover for a particular amount of time, usually a year. The average bonus rates of the car insurance companies are somewhat as follows:

Year with no claim	No – claim BONUS %
1 years	20 %
2 years	25 %
3 years	35 %
4 years	45%
5 years	50 %
5 +	Is calculated

The no-claim bonus is very beneficial. It is the bonus that the insured or the driver or the owner of the car has earned by not getting into any accidents. When the insured does not claim anything in a year and the sum insured is intact and not given in a cover, you get a bonus or a discount on the next premium to be paid. Do not leave the bonus as you can get a great discount on your premiums. Claim the bonus or discount and pay a lower premium. Also, if you are renewing your policy or buying new policy, you are eligible to get the no – claim bonus. Many car owners, who have sold their car, make the mistake of leaving the bonus along with the car. Since you were the one who rode safely without getting into an accident, it is your reward and you can claim it also after selling your vehicle. 

What does the insurance company get from giving NCB?

The NCB is not just a reward! The insured that have never filed a claim or rarely file claims are of very little burden on the insurance company. So, they reward their low – risk insureds through the no-claim bonus and no-claim discounts on the annual premiums for the renewal of the policy. Another thing about this reward is that it reinforces the act of not filing for minor claims. 

How to get the NCB after the sale has been made?

You are selling your car, not your insurance. When you sell a car, you need to transfer the car insurance policy to the buyer as well. It does not get automatically transferred. If you have to transfer it to the new car owner/ buyer, you need to follow the process of applying to the service provider to make the requisite endorsement to the policy. If you transfer the insurance to the buyer, then the no – claim bonus will be given to the new owner of the vehicle who is also the person under whose name the car insurance policy is. If, you don’t transfer it, the benefits of the no – claim bonus can be reaped by you solely. The no – claim bonus follows the owner, not the vehicle. So, when you sell your car, you still have the car insurance policy on your name.

What do you have to do to retain it?

• You have to inform your car insurance company’s agent about it 
• Then, you have to get the no – claim bonus preserve letter from the insurance company 

This certificate is valid up to a good 2 years. 

There is no provision to transfer the no – claim bonus to another person but in certain cases, it may be possible that you can transfer it to your spouse but at the discretion of the service provider. 

In case you buy a new car

In case you buy a new car after selling your old one, the policy that you had bought with your old car can simply be transferred to your current car. This can be done because your insurance policy is yours and not your cars. You just have to transfer it onto your car as it is already under your name. In a different scenario, where you are buying a used or a second – hand car and the seller is transferring the insurance policy to you, you can get the new policy with the car as well as retain your old car insurance policy after selling your old car. 

Conclusion

It is also possible to take the no – claim certificate and let your insurance company know that and reserve your bonus in case you are not buying a new car immediately after selling your old car. You don’t need buy a new vehicle immediately, you can avail the no – claim discount on your new vehicle when you purchase it but make sure it is within three years from the date you cancelled or transferred your car insurance policy. 

Drive safe & get rewarded!😀