UK Car Insurance News

February 15, 2005

 

Most motorists would rather pay up than claim on insurance

Over a quarter of motorists would rather foot a £300 bill themselves after an accident, than risk losing their no claims bonus, according to new research from MORE TH>N. The average driver is prepared to spend £235 and one in 10 is ready to shell out a whopping £500.

The survey found that nine out of 10 drivers had a no claims bonus that they were clearly desperate to keep. Over a third of drivers said they had damaged their car at some point and not claimed on their insurance; 28% of those surveyed admitted the main reason for not filing a claim after an accident was because they were worried it could mean losing their no claims bonus.

Traditionally, insurers reduce a customer?s no claims bonus by two years after a claim, potentially leading to a premium increase of over 50%. While many insurers invite customers to ?protect? their no claims bonus, the cover can vary widely from insurer to insurer.

David Pitt, Motor Manager for MORE TH>N, commented: ?Our survey demonstrates just how important a motorist?s no claims bonus is to them, to the point that they are prepared to pay hundreds of pounds for damage to their cars rather than claim after an accident.

?We think it?s wrong that drivers who have earned their no claims bonus after years of good driving are penalised through increased premiums when they do eventually need to claim. We promise not to do this through our Maximum No Claims Bonus Protection for Life.?

In contrast, Direct Line and Churchill will only allow one claim a year or two claims in any three year period before they will reduce a customer?s no claims bonus. In addition, the RAC say that despite protecting their no claims discount, a customer?s premium may increase if they make claims.

David Pitt, Motor Manager for MORE TH>N, concluded: ?So they are not caught out by some of the so-called ?protected? no claims bonus schemes on the market, we recommend that all drivers check their policy wording. Their insurer may either limit the number of claims allowed or even reserve the right to increase premiums after a claim.?

posted by UK Insurance Index  @ 5:18 PM

News items are intended for information only and should not be relied upon when making insurance decisions. Due to their nature some of the information in these news stories may no longer be current.