The no-claim discount, or NCD, rewards years without a claim. It can also shrink after one bad afternoon in an HDB car park. These tips cover how it builds, what knocks it down, and how to keep it when you change car.
How the discount builds
Know the ladder. The discount starts at 10% after one claim-free year. It rises 10 points a year and tops out at 50% after five years. A new driver needs five clean years to reach the top step.
It belongs to you, not the car. The discount sits with you as the driver, not with the vehicle. It moves with you to a new car or a new insurer. Selling the car does not hand your discount to the buyer.
A clean year is a clean year. The ladder counts years without a claim. It does not count kilometres, ERP gantries or trips on the expressways. A car that sits in the car park most weeks earns the same step as one used daily.
What each step is worth
Look at dollars, not percentages. The site's NCD page prices one example: a 3-year-old Toyota Corolla Altis 1.6, comprehensive, authorised workshop, for a driver aged 40 with 10 years' driving. With no discount, the lowest price across 14 insurers was S$1,416.35. At 50% it was S$642.42. That is S$773.93 a year, on prices as of 27 October 2026, GST included.
Each step has its own price. The dollar drop is not the same at every step. Open each step on the NCD page to see every insurer's price at that level. The Corolla Altis at 50% NCD page shows the top step on its own.
Your figures will differ. Your age, your car, your driving record and your workshop choice all move the price. The example above is a guide to scale, not a quote. To see prices for your own details, run them through the comparison.
When a claim knocks it down
One claim can cost several steps. How far the discount falls depends on the insurer and the claim. The site works through one case: a claim cuts 50% to 20%, then the discount climbs back 10 points a year. On the lowest prices of 27 October 2026, that costs about S$825.02 more over the three years it takes to recover.
The bill arrives at renewal. The repair may be done in a week. The cost of the claim shows up in each of the next few renewal notices. It is easy to forget that part when the workshop hands back the keys.
Ask what counts as a claim. Policies differ on how they treat a claim where the other driver was at fault. They also differ on windscreen claims and other small items. Ask the insurer, and read the policy wording, before you assume a claim is free.
Reporting is a separate duty. Check your policy for the rule on telling the insurer about an accident, including one you do not plan to claim for. Note any time limit it sets. Where an accident must go to the police, report it to the Singapore Police Force. The claims guide covers the steps.
The NCD protector
What it does. The NCD protector is an add-on that keeps your discount after one claim. Depending on the insurer, it is offered from 30%, 40% or 50% NCD. Below that level, it may not be on the menu at all.
What it does not do. It does not stop the claim being recorded. Some insurers also limit how often it can be used. Ask how a recorded claim is treated if you later move to a different insurer.
Set its price against the risk. The add-on has a cost at every renewal. The lost-discount example above gives a sense of what one claim can cost without it. Compare the two sums on your own quote, and check the limits on use.
Small damage: pay or claim
Get a repair quote first. For a small repair, paying it yourself can cost less than claiming. Ask the workshop for a written quote. Then compare it with the higher premiums you would pay over the years it takes to climb back.
Count the excess too. A claim usually comes with an excess you pay first. That makes a small claim worth even less. The excess guide explains how it works.
Settling with another driver is a bigger step. A scrape on your own bumper is one thing. Paying for someone else's car is another, because their repair bill is outside your control. Your policy may still require you to report the accident, so check before agreeing to anything.
Workshop choice affects the sum. Repair costs and premiums can differ between an authorised workshop and any workshop. The workshop guide sets out the difference. Factor it in when you weigh a small claim.
Taking the discount to a new car
Ask for proof of your NCD. When a policy ends, ask the insurer for a record of your discount. A new insurer will want to see it. It saves a round of emails when you buy the next car.
Ask about gaps between cars. Some owners sell one car and wait before buying the next, perhaps for a COE round. Rules on how long a discount stays valid while you have no car are not set out here. Ask your insurer before the old policy lapses.
Check whose name is on the policy. The discount follows the person, not the household. If a spouse or parent holds the new policy, your years may not count for them. Ask before deciding who will be the policyholder.
Price the new car at your step. A new car means a new quote, even at the same NCD. The car price pages list prices by model, such as the Toyota Corolla Altis. For road tax and other running rules, LTA's OneMotoring site has the details.
Before you renew
Confirm the step on the notice. Check that the NCD printed on your renewal matches your record. A wrong step costs money every year until someone spots it.
Compare at your current step. Prices at the same discount can vary a lot between insurers. The site's example shows a spread between the lowest and the typical price at every step. Comparing at renewal is a separate saving from keeping the discount itself.
Car insurance through Shenton Brokers
Before you drive off or renew, get your car insurance through Shenton Brokers. See which cars cost least to insure, or look up your own model's prices from every insurer we compare. Or get a quote with your own details.