Does Making A Small Claim Affect Your NCD?
If you’ve ever scratched your bumper of cracked your headlamp, you’ve probably asked yourself:
“Should I claim insurance? Or just pay for it myself?”
One of the biggest concerns drivers have is whether making a small claim will affect their No Claim Discount (NCD), and the answer depends on the type of claim you make.
Let’s break it down:
First, what is NCD?
Your No Claim Discount (NCD) is a reward for safe driving. For every claim-free year, your NCD increases, up to a maximum of 55% in Malaysia.
This means:
The higher your NCD, the lower your insurance premium
Making certain types of claims can reduce your NCD back to 0%
Due to this, many drivers hesitate before filling smaller claims.
Will a Small Claim Reset Your NCD:
It depends on the type of claim.
Claims That Usually AFFECT Your NCD:
If you make an own damage claim (where your insurer pays for repairs to your car and no third party is involved), your NCD will typically reset to 0% at the next renewal.
Even if the amount is small, your NCD reduction can cost you more in the long run due to higher premiums.
Claims That Usually Do NOT Affect Your NCD:
Some claims generally do not reduce your NCD, such as:
Windscreen claims (if you have purchased windscreen coverage add-on)
Claims where the other party is fully at fault and their insurer pays
Certain special perils claims, depending on policy terms
This is why understanding your add-ons matter because they can protect both your car and your NCD.
Ai Generated Image: Visual highlighting common car insurance policy exclusions such as wear and tear, driving under influence, vehicle modifications, and natural disasters.
Should You Make a Claim for Minor Damages?
Before making a small claim, ask yourself:
How much is the repair cost?
How much NCD will you lose?
How much more will you pay in premium next year?
For example, if your repair costs more than RM800 but losing your 55% NCD increases next year’s premium significantly, it might make more financial sense to pay out-of-pocket.
Sometimes, a “small” claim can turn into a bigger cost over time.
When Renewal Timing Matters
If your policy is due soon and you’ve maintained your NCD, renewal season is also a great time to maximise your benefits.
When you renew between 6 to 28 February 2026, you’ll automatically be entered into the Renew & Huat Lucky Draw, to stand a chance to win RM8,888 in cash.
PolicyStreet also offers Free Road Tax (capped at RM90) for renewals made from the 25th until the end of the month.
So if you’ve protected your NCD all year, your renewal could come with extra savings, and even a little extra huat.
The Smart Way to Protect Your NCD
To avoid losing your NCD unnecessarily, consider:
Adding windscreen coverage
Reviewing whether small repairs are worth claiming
Driving defensively to minimise accident risks
Checking policy term carefully before making a claim
Your NCD is one of the biggest cost-saving tools in your insurance policy. Protecting it wisely can make a significant difference in the long run.
Making a small claim can affect your NCD, but not always. It depends on the type of claim and your policy coverage. Before filing, weigh the short-term repair cost against the long-term premium increase because smart drivers don’t just think about today’s repairs, they think about tomorrow’s savings.
