Motorists are warned they could still pay for invalidated protection, as incorrect details could void policies. Car insurance comparison experts say many drivers could have already invalidated their no-claims discount or are unaware of the factors affecting the policy.
Taking a break from driving or being switched to the second driver on a policy could break the claims discount, meaning drivers falsely declare years of no claims they don’t have.
With households still feeling the squeeze, having a no-claims discount built up over several years signals to insurers that the driver is careful and can help keep costly premiums down.
However, with motorists switching insurers annually to help manage costs, keeping track of driving history can be challenging. If the information is relayed inaccurately to a new insurer, it could invalidate the whole policy.
The experts suggest checking the claims status before issuing a new policy to ensure all information is correct and avoid future problems.
Drivers can contact the Motor Insurers’ Bureau (MIB) to access the database that holds their historical driving data.
Another thing to look out for is the time allowed for claims. Some UK insurers will not offer further discounts after nine years of no claims.
Motorists need to consider this 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 re-ing, specific 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, many people perhaps don’t know these big ‘no-nos’ that can break their no-claims and eradicate the discount they’ve built up.
“The difference between a 0 and 5-year 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 differ, so drivers need to compare.
“No claims discount protection is another hot topic for discussion this year. Customers need to check the details with their insurer, get a quote with and without the additional protection for comparison, and ensure their bonus is continuously protected should they decide to switch providers.
“Normally protected discounts allow drivers to make up to two claims within three to five years without losing their no-claims discount, but this can vary between insurers, so be careful.
“A recent Quotezone survey found that 39% of drivers 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.”
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