Car Insurance: You have found a way to reduce the insurance premium while buying a new car, this 'trick' is a game changer

There are many things related to car insurance that you should know about, because who knows when which information will be useful for you. After selling the old car, now you are also going to buy a new car, so you should know how you can save money on insurance premiums while buying a new car?

You can take advantage of NCB Transfer to save money on insurance premium while buying a new car. Let us explain to you what is NCB transfer and what you have to do for transfer?

What is NCB: What is NCB?

Before understanding NCB transfer, it is important to understand what NCB is. If you see NCB written in any insurance policy, it means no claim bonus. This bonus is given to you because you did not claim anything from the insurance company in the year you paid for the policy. In case of not claiming, the company has given you the benefit of no claim bonus which will help you in reducing your premium next time.

What is the method of NCB Transfer?

Santosh Sahani, Motor Head of Kataria Insurance, said that when you plan to sell your old car and buy a new one, then while selling the old car, you have to send a copy of the agreement and a copy of the RC to the old insurance company and tell them that you have sold the car. Along with informing the insurance company, you will also have to freeze your old NCB and ask the company to issue an NCB letter.

After the NCB letter is issued by the company, you will have to give this letter to the new insurance company from which you are buying the policy while buying a new car. Only after giving the letter will you get the benefit of discount on the insurance premium. By following this process, you can save thousands on the insurance premium of the new car.