However, Should Such Drivers Have One Accident Each They Could Find Their Insurance Costs Rising By 92 Pounds

Category: Finance, Personal Finance.

By not taking steps to protect their no- claims discount( NCD) policy on their car insurance, motorists across the country could see increasing strains at their attempts at money management, it has been stated. According to the price comparison website, almost a third of motorists have built up enough time to qualify for protection on their NCD, yet have chosen not to do so.

In research carried out by uSwitch, more than 7 million British drivers with at least four years worth of NCD are putting such discounts at risk by not getting cover for it. However, should such drivers have one accident each they could find their insurance costs rising by 92 pounds. The company stated drivers can avoid running the risk of losing their NCD, also known as a no- claims bonus, by making an annual payment at an average cost of 30 pounds 72p to their insurance provider. With this a total of 707 million pounds, it is a figure which could impact upon their propensity to service other areas of their spending, overdrafts or personal, for example mortgages loans. By doing so, should they have an accident they will not lose their discount and, may be able, in some cases to avoid witnessing a rise in their annual insurance costs, which in turn may help ease pressure on their finances. As the cost of claims continue to rise, insurers will increase premiums to cover their costs. Ashton Berkhauer, insurance expert for the price comparison website, said: "No- claims bonus protection plays a really important role as it covers motorists against premium hikes when they make a claim.

Consumers should therefore consider the benefits that protecting their NCD can offer" . "Nearly three- quarters( 72 per cent) of motorists say they choose their car insurance policy purely based on price, with such variation, but across the industry when it comes to protecting NCDs, this could be a false economy. Mr Berkhauer added that consumers should consider spending money, whether it be sourced from a personal loan or other means, on car insurance and NCD cover wisely. Choosing a policy should be based on good value for money and getting the most comprehensive policy for your needs" . He stated that borrowers should be cautious of always plumping for the cheapest deal as such an offer may not provide all the features they need from a policy. Meanwhile, research carried out by Zurich earlier this year revealed that consumers are spending an increasing amount of money running their car. The insurance representative also asserted that" sometimes finding the best NCD protection can be just as financially beneficial as finding the best insurance policy" .

With a total of 51 billion pounds splashed out every year, drivers are paying a typical amount of 1, 776 pounds 62p on the likes of parking, vehicle tax and repairs. As a result, taking out a personal loan could be an effective way of meeting numerous motoring expenses. About a third of motorists have seen costs surge by over 400 pounds per year, which in turn could impact heavily on their ability to manage their finances.