This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

To Protect Or Not To Protect Your NCD?

CHESTER, England, April 9, 2013 /PRNewswire/ --

  • Not protecting a car insurance no claims discount (NCD) could lead to premiums rising by 30 per cent in the event of a claim
  • Protecting a five year NCD will add just £23 on average to annual premiums
  • Costs will vary greatly between providers, warns MoneySupermarket

Drivers making a claim on their motor insurance policy, with an 'unprotected' no claims discount (NCD), could see the cost of their premiums increase by as much as 30 per cent if they make a claim, according to research by MoneySupermarket.com.

The UK's number one comparison site analysed the cost benefit of protecting or not protecting a no claims discount. The research reveals if a motorist who had five years 'unprotected' NCD and made a claim, they would see premiums hiked from £322 to £417, an increase of £95, or 30 per cent. However, motorists with five years protected NCD making a claim would only see an eight per cent increase, or £28 - from £345 to £373 - to the cost of their annual premium. Furthermore, the average premium for motorists with zero years NCD stands at an expensive £700 a year. [ 1]

Peter Harrison, car insurance expert at MoneySupermarket, said: "Having reached the "Holy Grail" of five years no claims discount, many motorists will be reluctant to run the risk of losing it and may consider paying extra to protect it. Building up your no claims discount over a number of years can be a valuable commodity and can help reduce the cost of your premiums.

"With premiums on average rising by almost a third (30 per cent) if you make a claim, paying extra to protect your policy against this 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."

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,069.43 -10.71 -0.06%
S&P 500 2,113.56 -4.13 -0.20%
NASDAQ 5,068.2620 -23.8230 -0.47%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs