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."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV