WhatsApp
Everything you need to know about no-claims discounts
One of the great pleasures of buying a car, whether it is new or previously owned, is driving it on the open road for the first time. You sense that newfound freedom from the moment your hand touches the wheel, and you anticipate the adventures ahead.
But regardless of whether you purchased your new vehicle for weekend road-trips, for the daily commute into the CBD or just for taking your children to school, you must ensure you have adequate motor insurance before you can go anywhere. Choosing the right motor insurance for your needs is a huge topic with many variables which we aren’t going to cover here. Instead, we’re going to focus on an important aspect of motor insurance of which you should be aware: no-claims discount (NCD).
NCDs matter. Why? Because they save you money over the long term if you are a careful driver. So it pays to understand what they are and how you can benefit from selecting motor insurance that rewards you the better you drive.
How the no-claims discount works
When you purchase motor insurance, you pay a sum (called a premium) for the level of protection you receive. Exactly what this sum is varies and depends on your age, your driving history, or whether or not you have claimed for accidents in the past, among other factors. With an NCD, if you are the insured person and you haven’t claimed for a specified period, then you will be entitled to a discount the next time you need to pay your premium.
For example, with MSIG’s Private Motor Car insurance plan, you can enjoy an NCD over the following periods if you don’t claim for an accident:
| No. of Claim-free Years | The Discount (On Renewal Premium) |
One year 2 consecutive years 3 consecutive years 4 consecutive years 5 or more consecutive years | 20% 30% 40% 50% 60% |
As the above figures illustrate, the longer you don’t make a claim, the bigger the premium discount you will be eligible for, so it is in your interests to drive carefully!
Understanding excesses
A phrase you may encounter when looking at motor insurance plans is “excess”. When an accident happens, an excess is simply an agreed amount which the insurer deducts from any payment you receive, based on certain conditions.
Here is an example of how it works: if you are under the age of 25, haven’t held your driving license for longer than two years and are not named in the Policy Schedule at the time of an accident, then a Young Driver Excess, Inexperience Driver Excess and Unnamed Driver Excess will all apply, simultaneously, if you have to make a claim.
The good news is that, with MSIG HK’s Private Motor Car insurance plan, you can still benefit from one specific occasion: Windscreen Damage. If you accidentally damage your windscreen and your claim doesn’t exceed HK$5,000, your NCD Protector benefit allows you to maintain your NCD at renewal time, even if you make a claim within a year!
So enjoy driving and start saving by choosing motor insurance with a rewarding NCD benefit. To find out more about NCDs, and motor insurance, click here.
If you have any queries regarding different motor insurance plans, please feel free to contact us 
or find out more about our insurance plans:
Read more: Multi-car accidents: Who’s at fault?
Learn more about EASY Claims and file your claims online anytime, anywhere.
