Car insurance: Drivers urged to protect no claims

Wednesday, 03 February 2010

Get Adobe Flash player
It is crucial motorists protect their no claims discount (NCD) or they could see their car insurance premiums rise by almost three quarters should they have to make a claim, new research has found.

According to a study by moneysupermarket.com, if a policy holder with five years unprotected NCD made a claim they would see the cost of cover jump from £528 to £911.

Those with five years protected NCD would see the cost of a policy rise by 18 per cent from £590 to £694.

Steve Sweeney, head of motor insurance at the price comparison site, said that safeguarding an NCD makes economic sense.

"With premiums on average rising by 73 per cent if you make a claim, paying extra to protect your policy against this sharp hike may be worthwhile," he stated.

A recent study by Consumer Intelligence found that car insurance premiums have increased by 19.6 per cent over the past year, with the rising cost of personal injury claims and fraud driving up prices.ADNFCR-3010-ID-19594505-ADNFCR

Copyright Baubridge LtdADNFCR-3010-ID-19625400-ADNFCR

News Home

Authorised and regulated by the Financial Services Authority