Pay to protect premiums and insurers may still raise rates

While many motorists may pay out massive amounts of cash to protect their discount car insurance premiums, car insurance companies routinely still raise your rates if you’re involved in a car accident through no fault of your own, experts say.

Industry insiders have reported that many drivers have been reporting that their car insurance rates have gone up after being involved in what was classed as a no-fault accident, with some of these drivers paying out weighty sums in order to preserve the sanctity of their no-claims bonuses.  The bonuses, which are designed to demonstrate to insurers that you drive in a safe and responsible manner, can reduce premium prices by as much as 80 per cent in the case of a fully built-up five year no claims-bonus, but new research says that the actual value of a protected no-claims bonus is quite variable.

The amount insurers will discount motorists’ insurance policies varies widly.  One insurer was found to give a discount of £278 for a five year no-claims bonus, while a competitor offered a massive £1,454 discount for the same bonus.

Even if you do get into an accident and need to make a claim, you can ‘protect’ your no-claims bonus by paying a yearly fee which can be as high as £90 but averages at around £33.  Despite paying the fee to an insurer, drivers are not guaranteed to be free of premium increases, as insurers reserve the right to do so if you make a claim – regardless of whether or not you were at fault for the accident.


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