Can NCDs be copied?
Car owners who follow our blog are likely familiar with the "No Claims Discount" (NCD). NCD is one of the most typical car insurance discounts. If a policyholder has not made any car insurance claims during a specific period in the past, the insurance company will provide a corresponding discount on the premium
Transferring NCD vs. Copying NCD?
in our previousarticle, NCDs can be transferred, but is it possible to copy an NCD? So let's first talk about the difference between "transferring" and "copying" an NCD.
The key point about transferring your NCD is thatyour old policy must be cancelled first before you can transfer it. Common scenarios include when you change cars, cancelling the old car's policy and then transferring the NCD to the new car's policy; another scenario is when you switch to another insurance company for the same car, where you will enjoy the same NCD benefits at the new company.
Copying an NCD involvesretaining the old policy while transferring its NCD to another policy. A common scenario is when a car owner buys a new car and copies the existing policy's NCD to the new policy. It's important to note that if one of the copied vehicles is involved in an accident and requires a claim, the discounts on both policies will be deducted.
Does my insurance company support copying NCDs?
Therefore, theoretically, an NCD can be copied, but the new policy must be purchased from the same insurance company, and the new insurance must also be comprehensive. In addition, the regulations of each car insurance company in Hong Kong are different, and some companies do not accept copied NCDs. Therefore, car owners should consult their insurance company before buying a new car to avoid losing money
Different companies have very different terms and conditions, so seeking professional advice is the best course of action!
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