If you do the maths, it may not make financial sense to protect your no-claims bonus, as your car insurance rates can still increase significantly in the event of an accident.
It has become all too common in the current economic climate that car insurance companies will look for any way possible to get as much money from their customers as they can. Thanks to rising costs incurred by having to pay out massive compensation awards on an increasing number of accident claims, insurers have raised rates to recover these costs and at the same time made finding discount car insurance nearly impossible, sending consumers into paroxysms of anxiety and rage when it comes to renewal times.
Many drivers cling to whatever discounts they can find as a result of these increased costs, and are willing to pay extra to protect their no-claims bonus by adding no-claims protection to their policies. However, there are drivers reporting that their insurance premiums are still increasing by significant amounts in the wake of an accident, even after taking steps to ensure their no-claims bonus remains intact.
Technically, drivers do not lose their no-claims bonus if they purchase protection for it from their insurer, but insurers have found a way around this by simply raising premiums instead – which means that not only have drivers paid extra to preserve their no-claims bonus, but they’re still being penalised for being involved in an accident despite the precautions they have taken. Industry experts say that this sort of ‘bait and switch’ behaviour is reprehensible and should be stamped out.