Drivers should protect their No Claims Discount

| October 1, 2007 | 0 Comments

According to, the independent price comparison and switching service, more than 7.7 million drivers in the UK are putting 4 years or more of their No Claims Discount (NCD) at risk by not protecting it resulting in premium hikes of around £92 per annum in the event of an accident.

Approximately 33% of UK motorists have built up enough NCD to be eligible for protection but choose not to have this facility. However, if they have just one accident, the collective cost to these motorists would be £707 million in increased insurance premiums.

By paying an average £30 to protect it, drivers can avoid losing their NCD. This is a one-off yearly payment and in the event of an accident, allows drivers to make a claim without losing their NCD. The majority of insurers offer the option of NCD protection to those who have built up at least 4 years without making a claim. research reveals that some insurers offer a cheaper NCD protection. Admiral Insurance will protect a five year NCD for just £2.10, increasing a premium of £299.25 by just 0.7% to £301.35. However, if drivers do not protect their NCD and make a claim then their NCD would be reduced by two years resulting in them paying as much as £357.00 to Admiral. This is an increase of £56 in one year alone.

A spokesperson for urges drivers to opt for the NCD protection as it covers motorists against premium hikes when they make a claim. The cost of claims is rising so insurers will increase premiums to cover their own costs.

The spokesperson added that insurers such as More Th> n and eCar offer NCD protection for life so drivers with this policy can have many accidents and still won’t lose their NCD. concluded that when it comes to a limited number of accidents, the next best NCD protection comes from insurers which allow drivers to have one accident in one year. For instance, Direct Line and Cornhill Direct will protect a driver’s NCD for one accident in one year or two accidents in three consecutive years. However, insurers such as the AA, Fortis, Norwich Union and Quick Fit will only protect motorists’ NCD for two accidents in five years.

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