Motor car insurance policy holders have traditionally been reluctant to switch insurers when faced with the prospect of losing their no-claims discounts, sources say.
The significant reduction in car insurance rates such a discount can bring to motorists makes it a valuable commodity, say insurance industry experts. Many such motorists even consider paying extra in order to preserve a discount after reaching the five year mark, they claim.
However any potential savings can end up dwindling if motorists protect their no-claims discount and then don’t make an insurance claim for several subsequent years. Instead experts recommend shopping around for the best possible deal if drivers are looking to protect their hard-earned discount car insurance.
This is because some providers of discount car insurance will permit motorists to take their no-claims bonus with them in the event they find a more affordable deal with an alternative provider. Industry insiders state that the fees and premiums involved in protecting a no-claims discount are completely dependent upon the insurer and the driver’s motoring history and personal circumstances.
Moreover experts remind drivers that even if they work hard to protect their discount, the price of their cover may increase afterwards since premiums tend to go up after a major accident. This follows the results of a new research study that revealed car insurance premiums have increased by an average £177 over the past year.
One study conducted by car insurance experts EMB stated that the largest average cost increase was experienced by 17-20 year old males. Comprehensive policies rose to a new high of £2,879, up nearly £285 from the previous year’s average.
Female drivers of the same age also saw an increase of £147, bringing their average cost to £1,490. Since women statistically get into smaller and less expensive road traffic accidents, their insurance premiums are traditionally lower than their male counterparts.