No Claims Discount (NCD) is a common term used in car insurance policies in Abu Dhabi and across the UAE. It refers to a discount offered by insurance companies to policyholders who have not made any claims during the policy period. In this article, we’ll delve into the concept of NCD, its benefits, and how it affects your car insurance abu dhabi.

What is No Claims Discount?

No Claims Discount, also known as No Claims Bonus (NCB), is a reward system designed to incentivize safe driving behavior and reduce the number of fraudulent claims. Policyholders who do not make any claims during the policy term are eligible for a discount on their insurance premiums when renewing their policy.

How Does No Claims Discount Work?

The No Claims Discount typically accumulates over consecutive claim-free years and is expressed as a percentage. The longer you go without making a claim, the higher your NCD percentage becomes, resulting in greater discounts on your premiums. Some insurance companies in Abu Dhabi offer significant discounts of up to 50% or more for policyholders with a long history of claim-free driving.

Benefits of No Claims Discount

One of the primary benefits of NCD is the potential for substantial savings on your car insurance premiums. By maintaining a good driving record and avoiding accidents, you can enjoy lower insurance costs and greater financial security. Additionally, NCD encourages responsible driving behavior and helps create a safer road environment for everyone.

How NCD Affects Your Premiums

When renewing your car insurance policy in Abu Dhabi, your NCD plays a crucial role in determining the cost of your premiums. The higher your NCD percentage, the lower your insurance premium will be. However, it’s essential to note that NCD is not transferable between insurance companies, so if you switch insurers, you may lose your accumulated discount.


No Claims Discount is a valuable benefit offered by car insurance abu dhabi as a reward for safe driving behavior. By maintaining a claim-free record, policyholders can enjoy significant discounts on their insurance premiums, resulting in substantial savings over time. If you’re a safe driver, be sure to take advantage of NCD when renewing your car insurance policy to enjoy lower premiums and greater peace of mind on the road.