One in four drivers avoid making car insurance claim over fears it could lead to ‘financial risk’

One in four drivers involved in car accidents have chosen to settle the issue outside of their insurance as high prices force motorists to avoid making a claim.

Data found that 52 per cent of drivers have never made a claim on their car insurance policy in a bid to reduce any excess costs.

Research revealed that when there was a need to make a claim, the numbers were higher among females.

Looking at the claims by region, West Midlands, London, South East England, East of England and Yorkshire were the top areas for claims.

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Greg Wilson, CEO and car insurance expert at Quotezone.co.uk explained that drivers have always been keen to “protect their no claims bonus” – especially as prices reach unprecedented heights.

A recent Quotezone survey showed that 23 per cent of drivers had paid for smaller incidents themselves to protect their no claims discount.

He said: “If you have been in an accident, settling outside of your insurance could seem like the cheaper, more efficient way to handle things.

“However, incidents that appear to be minor, may be more serious than you think, settling the claim yourself may seem to be protecting your no claims discount but it could put you at greater financial risk.”

Wilson added that even if the incident is dealt with outside of the insurer, drivers must report the incident to them within 24 hours or risk invalidating their insurance, even if they don’t want to make a claim.

The most important thing is to be “completely transparent with your insurance provider,” Wilson urged.

He stated: “It’s one of the biggest influences on premium price so it’s important people track their driving history, especially their no claims.

“Knowing exactly what savings they’re entitled to will help them negotiate a better deal – if in any doubt they can contact their current insurer or the Motor Insurers’ Bureau to access their historical driving data.”

Car insurance prices have continued to rise towards the £1,000 mark, with motorists constantly looking at ways to slash the prices, not telling their insurer of an accident being one of them.

Wilson detailed how protected discounts allow drivers to make up to two claims within a three-to-five-year period without losing their no claims discount.

But Wilson warned that this can vary between insurers so be careful and look at the specifics when switching providers.

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.