Drivers warned about simple error that could 'wipe clean' no-claims history

Car keys and calculator
-Credit: (Image: Getty Images)

For drivers, forking out for insurance can be a pretty hefty expense - especially if you choose to pay in one annual sum rather than spread out the cost over the year.

Something that can help to keep costs down slightly is having a few years of no-claims history under your belt. This discount tends to be applied for every year the policyholder does not need to make a claim.

Because of this, many drivers will be keen to protect their no-claims discount in order to save money on insurance. However, experts have warned that a few seemingly harmless error could 'wipe clean' a no-claims history, potentially pushing up the price, Birmingham Live reports. CEO and car insurance expert Greg Wilson said: “With the soaring cost of car insurance, it’s no surprise drivers are keen to protect their no claims discount. However, many may be unaware of the simple things that can invalidate their protection. Without realising, certain changes to the policy, such as becoming a named driver instead of the main driver or having a gap of more than two years, say across the pandemic when they weren’t driving – could wipe clean the no claims build-up and void the insurance policy.

“A no claims discount can be one of the biggest factors when it comes to the cost of a policy. Unfortunately, a lot of people perhaps don’t know these big ‘no no’s’ that can break their no claims and eradicate the discount they’ve built up. The difference between 0 and 5 years no claims bonus can be significant too, estimating 30% for one claim-free year and 60% for five claim-free years – although again, each insurance provider may be different so drivers need to compare."

When the nine-year mark is hit for no claims, many insurers will stop giving discounts. But some can continue this for up to 20 years, so it's always worth checking with your provider.

For extra security, drivers may choose to add no claims discount protection - and making sure to keep this after changing providers is crucial.

This feature often allows drivers to make up to two claims within a three to five year period without losing their no claims discount. But keep in mind that this can vary for each insurer.

Greg continued: recent Quotezone survey found 39% don’t read their insurance terms and conditions in full, this has never been more important, with a surge in new products flooding the market to help make insurance more affordable, it’s essential drivers check the details thoroughly and make sure they have adequate protection.

“It will not only help them stay on the right side of the law but also help them find real savings by shedding any extras they don’t need.”

Join the Daily Record's WhatsApp community here and get the latest news sent straight to your messages.