28 September 2007
Around seven million UK motorists are failing to protect their No Claims Discount (NCD) and are risking hefty premiums hikes if they are involved in an accident, uSwitch has revealed.
According to a report by the online price comparison and switching service, in the event of an accident, around 7.7 million drivers without NCD protection could face collective premium increases of £707 million.
Despite the fact that almost one in three UK drivers has accumulated enough NCD to be eligible for protection, too many people do not choose to take it out, uSwitch found.
uSwitch found that motorists could avoid losing their no claims bonus by paying an average of £30.72 to protect it.
Ashton Berkhauer, Insurance Expert at uSwitch.com said: "No claims bonus protection plays a really important role as it covers motorists against premium hikes when they make a claim."
"As the cost of claims continue to rise, insurers will increase premiums to cover their costs. Consumers should therefore consider the benefits that protecting their NCD can offer."
"Choosing a policy should be based on good value for money and getting the most comprehensive policy for your needs. The cheapest quote may not always provide all the features that consumers need from their car insurance and sometimes finding the best NCD protection can be just as financially beneficial as finding the best insurance policy," he warned.
Nearly three quarters (72%) of motorists say they choose their car insurance policy purely based on price.