Experts have warned Britons that they could be at risk of losing their car insurance benefits without knowing, and it could cost them thousands of pounds.
Millions of motorists could face invalidating their no claims discount and still be paying full price for cover, with experts calling on drivers to check.
Taking a break from driving or switching to becoming a second driver on a policy could break a no claims discount, an expert has warned.
A no claims discount, or no claim bonus, is a cost reduction applied to car insurance premiums for drivers who haven’t made any claims.
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The no-claims discount helps insurers understand how careful someone is behind the wheel, as well as their ability. As a reward, insurers can cut costs on premiums.
As more drivers look to shop around instead of auto-renewing their policy, they risk having inaccurate information that a new insurer can use when determining prices.
To avoid getting slapped with expensive costs, one expert has suggested checking the claims status before taking out a new policy to ensure all information is correct.
To check, drivers can contact the Motor Insurers’ Bureau and get access to the database which holds their historical driving data.
Greg Wilson, CEO of Quotezone.co.uk, explained that with the soaring cost of car insurance, “it’s no surprise drivers are keen to protect their no claims discount.”
He added: “Without realising, certain changes to the policy, such as becoming a named driver instead of the main driver or having a gap of more than two years, say across the pandemic when they weren’t driving – could wipe clean the no claims build-up and void the insurance policy.”
Another thing to look out for is the length of claims allowed, Wilson added, as some UK insurers will not offer further discounts after nine years of no claims.
The car insurance stated that a no claims discount can be one of the “biggest factors” when it comes to the cost of a policy.
The difference between zero and five years no claims bonus can be significant too, Wilson remarked.
He estimated a 30 per cent discount for one claim-free year and "60 per cent" for five claim-free years.
Wilson commented: “No claims discount protection is another hot topic for discussion this year.
“Customers need to check the details through with their insurer, get a quote with and without the additional protection for comparison and make sure their bonus is protected continuously should they decide to switch providers.”
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A recent Quotezone survey found that 39 per cent of drivers don’t read their insurance terms and conditions properly.
With a surge in new products flooding the market to help make insurance more affordable, Wilson said it is “essential” drivers check the details thoroughly and make sure they have “adequate” protection.
