Is protecting your no-claims discount worth the money?

by David Masters

Story link: Is protecting your no-claims discount worth the money?

Motorists who fail to protect their no-claims discount (NCD) could find themselves paying up to 73% more on car insurance after a crash.

Research by moneysupermarket found that a driver with five year’s unprotected NCD would see their premiums hiked from £528 to £911, an increase of £383, or 73%.

Motorists who protected their five year’s NCD would see premiums rise from £590 to £694, an increase of just 18%.

“Building up your no claims discount over a number of years, can be a valuable commodity and can significantly reduce the cost of your premiums,” said Steve Sweeney, head of car insurance at moneysupermarket.com.

“With premiums on average rising by 73 per cent if you make a claim, paying extra to protect your policy against this sharp hike might be worthwhile.”

However, the price comparison site warned that protecting an NCD can cost more in the long run than not protecting it, and that premiums will increase in the event of a crash even with protected NCD.

“Be warned, if you protect your policy but don’t make a claim for a number of years, you could find that you are eroding any potential savings,” Sweeney said.

“Furthermore, it’s worth motorists remembering it is the discount they are paying to protect, not their premium – so if you do make a claim, it may well increase the amount you pay for your cover anyway.”