Motorists breaking their no claims discount without realising

Motorists are being warned they could still be paying for invalidated protection, as incorrect details could void policies.

The car insurance comparison experts from Quotezone.co.uk say many drivers could have already invalidated their no claims discount, or are not aware of the factors which affect the policy.

Taking a break from driving or being switched to the second driver on a policy could actually break no claims discount, meaning drivers are falsely declaring years of no claims they don’t actually have.

With households still feeling the squeeze, having a no claims discount built up over a number of years signals to insurers that the driver is careful and can help keep costly premiums down.

But with motorists switching insurers annually to help manage costs, it can be difficult to keep track of the driving history – if the information is relayed inaccurately to a new insurer, it could invalidate the whole policy.

The experts suggest checking the claims status before taking out a new policy to ensure all information is correct and avoid any future problems.

Drivers can contact the Motor Insurers’ Bureau (MIB) to get access to the database which holds their historical driving data.

Another thing to look out for is the length of claims allowed, some UK insurers will not offer further discounts after nine years of no claims.

Motorists need to take this into consideration if deciding to switch providers and check the various stipulations of the individual insurance provider.

Quotezone.co.uk CEO and car insurance expert Greg Wilson said, “With the soaring cost of car insurance, it’s no surprise drivers are keen to protect their no claims discount.

“However, many may be unaware of the simple things that can invalidate their protection.  Without realising, certain changes to the policy, such as becoming a named driver instead of the main driver or having a gap of more than two years, say across the pandemic when they weren’t driving – could wipe clean the no claims build-up and void the insurance policy.

“A no claims discount can be one of the biggest factors when it comes to the cost of a policy. Unfortunately, a lot of people perhaps don’t know these big ‘no no’s’ that can break their no claims and eradicate the discount they’ve built up.

“The difference between 0 and 5 years no claims bonus can be significant too, estimating 30% for one claim-free year and 60% for five claim-free years – although again, each insurance provider may be different so drivers need to compare.

“No claims discount protection is another hot topic for discussion this year, customers need to check the details through with their insurer, get a quote with and without the additional protection for comparison and make sure their bonus is protected continuously should they decide to switch providers.

“Normally protected discounts allow drivers to make up to two claims within a three to five year period without losing their no claims discount, but this can vary between insurers so be careful.

“A recent Quotezone survey found 39% don’t read their insurance terms and conditions in full, this has never been more important, with a surge in new products flooding the market to help make insurance more affordable, it’s essential drivers check the details thoroughly and make sure they have adequate protection.

“It will not only help them stay on the right side of the law but also help them find real savings by shedding any extras they don’t need.”