How to Transfer Your NCD When You Buy a New Car

One of the most common questions when buying a new car: "What happens to my NCD?" Good news — you don't lose it. Here's how to transfer it correctly.

The Transfer Process

When you're buying a new car and want to transfer your NCD from your old car's policy:

1. Contact your current insurance company to request an NCD release letter
2. The letter confirms your NCD entitlement and "releases" it for use on a new policy
3. When insuring your new car, provide this NCD release letter to the new insurer
4. The NCD is applied to your new car's policy

Important Conditions

• You can only use your NCD on ONE vehicle at a time
• The old car's policy must be cancelled or allowed to expire before the NCD can be fully transferred
• There's usually a grace period — if your old policy expired within the last 3 years, your NCD is still valid
• NCD from a private car can only be transferred to another private car, not to a commercial vehicle

What If You're Selling Your Old Car?

When you sell your car, cancel the remaining policy and request a refund for unused months. Your NCD is held against your IC number and remains valid for your next vehicle purchase.

What If You Have Two Cars?

Each car has its own policy and NCD. Your NCD on Car A doesn't apply to Car B and vice versa. Each vehicle builds its own NCD independently.