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No-Claim Discount (NCD) for Car Insurance
One of the best ways to make significant savings on your motor insurance premium is to build up a number of years' worth of No-Claim Discount due to claims free with the insurance companies.

How no-claim discounts reduce premium prices?
One factor that car insurance Singapore companies base the price of their premiums on is the level of risk associated with each particular driver, so drivers that are perceived as being a 'lower risk' will pay less for their car insurance than drivers that are judged to be a 'higher risk'.
As far as insurers are concerned, the best barometer of risk is the number of years that a motorist has been driving without making a claim on their car insurance and so a no-claim bonus is awarded for each year of claim-free driving by 10% each year of no claim till a cap to 50%.
As these discounts can be accumulated and are calculated as a percentage of your premium, they can make a massive difference to the cost of your car insurance.

How are no-claim discounts calculated?
The way in which no-claim discount is calculated often varies from insurer to insurer but, as a general rule, you can expect to earn a 10 per cent discount after one year of claim-free driving; a 20 per cent discount after two years; 30 per cent after three years and up to 50 per cent after five years.
No-claim discounts are granted on all types of policy so, even if you have third party cover, you are still eligible for no-claim discounts for each year of you don't claim on your policy.
* Take note that for commercial vehicle the maximum no claim discount will be 20%.

Ways to build your no-claim discount
The only way to build your no-claim discount is to not make any claims on your insurance. As explained above, the more years you go without making a claim, the greater your discount will be.

Ways to lose your no-claim discount
The most obvious way to lose your no-claim discount is to have a claim made on your insurance because you have been at fault for an accident.
But it's important to note that your discount can be lost even if you are not at fault for an accident and the thing to remember is that it is a no-claim discount and not a no fault discount. So, for example, if you are hit by an uninsured driver, have to claim on your policy and your insurance company cannot recover the costs from another party then this will count against you and could mean that you lose all or part of your no-claim discount.
It is best to seek your agent or insurance company for advise if claims occurs so that your loss will be kept to the minimum and prevent the loss of No Claim Discount that you have accumulated over the years.
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