NCD and premiums

by Guest » Thu Mar 07, 2013 10:57 am
Guest

What is NCD? How it works and affect the auto insurance premiums?

Total Comments: 3

Posted: Thu Mar 07, 2013 02:22 pm Post Subject:

I think you are referring to No-Claim Discount. It is simply a small reduction in a portion of your collision and/or liability premium for being accident-free for a specific time period.

Some insurance companies, like Allstate, work it a different way, and call it "accident forgiveness" -- if you have been accident-free for several years and are involved in an at-fault collision, they promise not to raise your rate as a result. They still raise your rate along with everyone else's as a result of everyday operations and inflationary factors.

Posted: Fri Mar 08, 2013 08:09 am Post Subject:

Is that a one time opportunity then? and how many years does this "several years" mean? Is NCD allowed if I'm into minor accidents but don't claim for it?

Posted: Fri Mar 08, 2013 03:13 pm Post Subject:

I cannot answer these questions for you. They are discussed in your policy. What I can say is that "minor" accidents could have something to do with how your coverage works, claimed or not.

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