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6 Tips to Make the Most of Your NCD for Affordable Car Insurance


Singaporean drivers will do anything to protect their NCD. This money-saving discount, also known as the no-claim discount, provides you with a percentage off your premiums if you don’t have any claims.

Click here to read more about motorcycle NCD

After one year of safe driving, you’ll receive a 10% no claim discount. This number increases by an additional 10% until you reach the maximum discount of 50% after five years. So if your premiums are normally $2,000, you could save up to $1,000 with your NCD! Here are the top 6 ways you can get the most out of this generous insurance discount.

1.  Drive safely

It may seem obvious, but if you follow the rules of the road, you’re less likely to get into an accident. The majority of accidents are caused by speeding or failure to abide by traffic rules. You can avoid both of these scenarios by giving the road your undivided attention. Don’t get behind the wheel if you feel fatigued, and definitely, don’t drive if you are impaired.

It’s also important to watch out for other drivers on the road. Even if you do everything by the book, you can’t control how other people react. Always stay on the defence when driving. Look both ways at every intersection, and if a driver seems to be driving recklessly, get out of their way. It’s also really important to be alert on the road, so if you’re tired, or preoccupied, we suggest you take a cab instead!

2.  Shop around for better insurance

Too many Singaporeans mistakenly believe they have to stay with their current insurance provider to keep their NCD. However, this rumour isn’t true. You can shop around for the cheapest car insurance in Singapore without worrying about losing your NCD.

Get a few quotes from other providers before you renew your policy. As long as you have a sound driving record, insurance companies will go out of their way to offer you a good deal. If you do decide to switch companies, your NCD will be transferred over. There’s no reason to pay high premiums if you can save money elsewhere.

3.  Only drive one vehicle

Lots of people enjoy driving different types of cars, but if you own more than one vehicle, expect to pay higher premiums. Under Singaporean law, you must buy insurance for each car you own. However, your NCD only applies to one car at a time.

What does this mean? If you have a 50%NCD on your primary vehicle and you buy another car, your new vehicle will start on 0% NCDfor the first year. Of course, the longer you own and drive the car, the more you’ll be able to save. It’s up to you if paying a higher premium on a secondary vehicle is worth it or not.

4.  You can upgrade your car

If you decide to sell your current vehicle and replace it with a newer model, your NCD will still be transferred over! Your insurance company won’t punish you for buying something better. Do take note, however, that newer cars often come with higher premiums because they are more expensive to repair and replace.

5.  Save your discount after a claim

Accidents happen, and if you’re found at fault, you may be at risk of losing your NCD! Most insurance companies reduce the discount by a certain percentage (often 30%) for each claim, until the discount reaches zero. However, you may be able to keep your full discount, even if you are to blame.

After the insurance company pays out the claim, you can reimburse them for any money they paid. For example, if the insurance company paid $1,200 on repairs, you can repay them for the exact amount. Doing so should prevent them from penalising your NCD.

6.  Settle privately

If you do choose to settle privately, all accidents must still be reported to your insurer within 24 hours or by the next working day with your accident vehicle, no matter how trivial or even if there is no visible damage, and irrespective of whether you are claiming from any insurers or third parties. Settling privately with the other party may be a cheaper option. However,if you go this route, you’ll have to pay for the repairs of the other driver’s vehicle yourself.

NCD in Singapore

Searching for the cheapest car insurance in Singapore doesn’t mean you have to settle for second-rate coverage. Some of the best policies come with affordable premiums, especially if you already have a substantial NCD in place. DirectAsia  offers a helpful NCD Protector Plus optional benefit add-on that helps you safeguard your valuable NCD, so contact us today to find out more!