Motorists pay on average £23 extra on top of their annual car insurance for no claims discount protection.
(PRWEB UK) 12 April 2013
Unless they claim in the first year, drivers paying to protect their no claims discount are worse off on average, reports UK financial publication This Is Money.
The report compiled by Money Supermarket, reveals that those who pay for no claims are worse off than non-protected motorists if they do not make a claim in the first year.
Motorists pay on average £23 extra on top of their annual car insurance for no claims discount protection. However, the longer the protection is in place, the less cost-effective is becomes.
Drivers with a five year no claims discount, who paid to protect that discount, would be £21 on average if they claimed in the first year of protection compared to a motorist who made a claim on an unprotected policy. In the second year, motorists would be £2 worse off and in the third year, £25 worse off.
A spokesperson from Cost.co.uk said:
“The research provides some interesting points about the value of no claims protection and if it is really worth it. No claims protection only covers the same percent discount as before, but will still take accidents into account when calculating motor insurance policies.”
Based in Essex, Cost.co.uk is one of the UK’s leading price comparison sites. Allowing their online customers to seek out great deals and offers for home insurance, car insurance, credit cards, holidays and more. Founded in 2012, the agency has a trusted reputation for sourcing the most ideal policies at affordable prices.