What is NCD (No Claims Discount)
Your No Claim Discount (NCD) is a reward for not making insurance claims. The longer you go claim-free, the higher your discount is (up to 55%).
It’s basically your “safe driver cashback”.
Can You Share NCD Between Two Cars?
No. Even though NCD is linked to you (the driver), it can only be applied to one car policy at a time.
You cannot split your NCD between cars
You cannot duplicate it across two cars
You must choose which car gets the discount
The “Second Car” Reality
If you own two cars:
Car A (existing car): Keeps your current NCD
Car B (new car) : Stars at 0% NCD
This is where many Malaysians get confused, especially when buying a second car and expecting the same savings.
Why Doesn’t NCD Work Across Multiple Cars?
The logic is simple: NCD rewards risk exposure.
If insurers allowed one NCD to apply to multiple vehicles, it would mean:
Multiple cars are getting discounted coverage, while the driver risk is spread across more vehicles
From an insurer’s perspective, that increases the likelihood of claims, so the system is designed to keep NCD tied to one active policy at a time.
Smart Strategy:How to Use Your NCD Wisely
Instead of trying to “share” it, optimise it:
1. Assign NCD to the more expensive car
Use your NCD where the premium is higher. This gives you the biggest savings.
2. Transfer NCD when switching cars
If you sell car A, you can transfer your NCD to car B when renewing.
3. Let the second car build its own NCD
Over time, your second car can accumulate its own discount (up to 55%).
4. Don’t let Your NCD Sit Unused
If your NCD is not used for too long (typically 1-2 years), it may lapse.
If you've sold your car and haven’t reassigned the NCD yet. Make sure to use it before it lapses.
Important: What Happens If You Make a Claim?
If you claim insurance on the car using your NCD:
Your NCD resets to 0%
Your premium increases at the next renewal
Tip: Another reason to strategically assign your NCD to the car you’re least likely to claim on.
The Real “Second Car Strategy"
The idea isn’t to share your NCD, it is to use it where it matters most.
For multiple-car owners, the goal is to:
Maximise savings on your highest-cost vehicle
Build separate NCD over time
Avoid unnecessary claims that reset your discount
Once you understand this, managing multiple car policies becomes more straightforward.
Frequently Asked Questions
1. Can I transfer my NCD to a second car?
Yes, but only if you’re no longer using it on another car. NCD can be transferred, but not shared simultaneously.
2. Can husband and wife share NCD between cars?
No. NCD is tied to an individual policyholder, not shared across people or vehicles unless ownership/policy changes.
3. How do I use my NCD for a new car?
You’ll need to move (transfer) your NCD from your older car policy to the new one during renewal or purchase.
4. Does my second car start with any discount?
No, a second car starts at 0% NCD, unless you transfer an existing NCD to it.
5. Will my NCD expire if unused?
Yes. If not used for a period (typically 1-2 years), your NCD may lapse, so don’t park it for too long.
