Protected no claims discount could help save money on car insurance

Wed, 03 Feb 2010

A car insurance expert has advised motorists to protect their no claims discount (NCD) to avoid serious hikes in their premium.

Research by moneysupermarket.com has shown that if a policy holder with a five-year NCD makes a claim, they would see their premiums rise by an average of 73 per cent. In contrast, anyone with a protected NCD would only have to pay 18 per cent more in premiums if they make a claim .

According to Steve Sweeney, head of motor insurance at moneysupermarket.com, paying on average £62 more a year for a protected NCD could save drivers money, although with a caveat.

He said: "Paying extra to protect your policy against this sharp hike might be worthwhile.

"But 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 ."

AXA recently entered the car insurance market, rewarding drivers with experience and a history of no claims.

People who have not claimed for over eight years could be in line for a 90 per cent discount with the company.
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