Car insurance: Is it worth protecting a no claims bonus?

Wednesday, 24 February 2010

Those who shop around for the online car insurance will know that building up a no-claims discount is one of the best ways to reduce the cost of a premium.

Many insurers offer discounts of up to 70 per cent for drivers who have not claimed for over five years, according to Confused.com.

Typically, drivers will then be offered the chance to 'protect' their no-claims discount, meaning that if an accident occurs after this point the bonus will remain intact.

However, writing for the price comparison website, Esther Shaw points out that motorists looking to protect a five-year no-claims discount could face a premium of up to £90 on top of the cost of annual car insurance.

"If you do decide to leave your five-year no-claims discount 'unprotected', you do need to be aware of the 'step back' scale if you need to make a claim, as with most insurers a certain percentage of the discount is lost for each claim," she advised.

Carmony.com recently stated that sales of 4x4 vehicles have shot up following the recent snowy weather as car insurance customers sought to protect their no-claims bonus in the icy conditons.

Posted by Rick Malone

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