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No Claim Discount protector. Should you get it?

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Firstly, here’s No Claim Discounts explained in a nutshell.

What is an No Claim Discount or No Claims Bonus?

No Claim Discount (NCD) or No Claims Bonus (NCB) is a discount on your car insurance premium. It’s based on how long you’ve been driving and your claims record. As you accumulate more years of driving experience without making a claim, you receive a discount on the full-priced premium.

Having an No Claim Discount is one of the best ways you are rewarded as a safe driver.

If you have not made any insurance claim in the past 1 year, your NCD will be increase by 10% on renewal , up to a maximum of 50% after five years. The amount this is worth varies depending on the insurer but it can easily save drivers several hundred dollars each year on their premium.

How much can you save on your car insurance premium with a No Claim Discount?

How much exactly do Singaporean motorists save with an NCD of 50%? That was the question behind a study conducted by independent consumer researchers, ValueChampion, who looked at 10 leading insurance companies.

The study carried out a direct comparison of premiums for a 45-year-old male driver of a Toyota Corolla Altis Sedan without a No Claims Discount and compared it against the premium for a driver with a similar profile who enjoy a 50% NCD.

The findings showed that motorists with a 50% NCD could nearly half their premium prices with average potential savings of around $500 each year.

For instance, motorists who chose Budget Direct Insurance stood to make the biggest savings, with their premium prices being more than halved.

The independent study showed that Budget Direct Insurance has one of the lowest average car insurance premiums on the market at $1,153 per year for a 45 year-old male driver of a Toyota Corolla. This premium price is more than halved to $496 for a driver with a similar profile who enjoys a 50% NCD. That amounts to savings of around $657 on an annual premium for such a driver.

Difference-in-Car Insurance-Premiums-for-NCD-vs-Non-NCD Drivers

What is an NCD Protector?

A No Claim Discount Protector protects your NCD and allows you to make a claim under your policy without affecting your NCD. Without it, your NCD will be reduced by 30% when you make a claim under your policy. Not only will you have to pay potentially hundreds of dollars more on your premium when you renew your policy, you will also have to start building up your NCD back up to the level it was prior to the accident.

Should you get an NCD protector?

Many insurers offer an NCD Protector benefit for roughly an additional 10% on your premium. This is a highly valuable feature well worth paying a slightly higher premium for, if your budget permits, as it could save you hundreds of dollars and grant you significant peace of mind in the long run. However, do note that your protected NCD is not transferable to another insurer. This means if you want to retain your NCD after an accident, you will have to renew with your existing insurer.

Here’s how an NCD protector works with Budget Direct Insurance

If you have 30% NCD or more, you can choose to protect your NCD.

For those with a 30% NCD and above you can make one claim during your policy term without it affecting your NCD.

You will be allowed to keep your NCD at the start of your Policy if you make no more than one claim within the same Policy Term. The table below shows how the NCD Protector affects your NCD if you have made claims with the policy term.

No. of claims made during Policy Term*

NCD at commencement of Policy Term is 30%

NCD at commencement of Policy Term is 40%

NCD at commencement of Policy Term is 50%









Three or more




Source: ValueChampion

Includes cases where an incident occurs during the Policy Term but the claim is made after the Policy Term has expired.

What happens if you don't have an NCD Protector?

In the event of an accident and there is a claim made under your Policy, your No Claim Discount will be affected.

If your current NCD is 50%, it will be reduced to 20% on renewal if you make one claim under your policy. Your NCD will be reduced to 0% should you make two or more claims per policy term.

Without having an NCD protector, those with an NCD of 30% will lose their No Claim Discounts. And those with an NCD of 40% will have it reduced to NCD 10% if they make one claim, and zero if they make two or more claims.

Without the optional ‘NCD Protection’ cover

Your current
No Claim Discount

Your reduced No Claim Discount

if you make 1 'at-fault' claim

if you make 2 or more 'at-fault' claims







30% and below



Source: ValueChampion

Meanwhile, find out if being involved in a car accident will automatically increase your premiums.

For more information on protecting your No Claim Discount, be sure to visit our FAQ page.

Wherever you go, whatever you do, remember it’s vital to have good .
Get a quick quote today and see how much you can save.

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