Buying full coverage insurance means you're exempt from liability and won't have to pay NCD (Non-Dispute Resolution) in your claims?
In recent years, Hong Kong's auto insurance market has become increasingly competitive, with various insurance companies launching promotional offers to attract customers. Among them, Full Insurance's "No Claims Discount Protection (NCD Protection)" is a particularly attractive clause. Let's take a look!
What is NCD?
If you don't file any claims during your car insurance policy term, your insurance company will give you a No Claims Discount (NCD). This means your premium will be cheaper the following year. However, if you are involved in an accident and need to file a claim with your insurance company, your NCD will be deducted. In other words, your premium will be more expensive the following year
What is "No Claim Discount Protection (NCD Protection)"?
Most comprehensive insurance plans now include "No Claim Discount Protection (NCD Protection)". Generally, if the repair cost does not exceed 20% of the insured vehicle's market value or NT$60,000, the owner will not need to pay a deductible and will not have their NCD deducted. The specific cost may vary depending on the policy terms, so please review them carefully
Additionally, please note that "No Claims Discount Coverage" usually includes a clause stating: "The No Claims Discount Coverage will not apply if you transfer to any other insurance company for any reason, including if both parties do not renew their policies." This means you will need to renew your policy with your current insurance company next year. If you switch insurance companies, you may be subject to NCD (No Claims Discount)
Protection for car owners
Because the NCD discount rate increases year by year, many drivers choose to pay for repairs out of pocket rather than claim compensation from the insurance company in order to keep their NCD. However, this situation can be improved by choosing comprehensive insurance
Under the comprehensive insurance coverage, if the other driver's negligence causes damage to our vehicle, the insurance company will cover the repair costs, and the driver with comprehensive insurance will not bear any responsibility, no NCD will be deducted, and they can still enjoy the increasing NCD no-claim discount in the following year
Finally, AWM reminds everyone that whether you purchase comprehensive or three-tier insurance, please drive carefully to avoid unnecessary accidents. If you are unfortunately involved in a car accident, please contact your insurance company immediately to file a claim, prioritizing your own safety. Choose AWM for insurance and enjoy comparison of car insurance plans and expert advice! Get a car insurance quote and purchase from AWM now .