Car insurance warning as thousands of drivers could be unknowingly invalidating no-claims bonus

Drivers have been warned not to get caught out

Thousands of motorists are unknowingly paying to protect a non-existent no-claims bonus, according to motoring experts.

Many drivers are oblivious to the fact that changes in their circumstances could invalidate their years of no claims, even if they’ve never made a claim. Unbeknown to them, they continue to pay annually to protect a no-claims bonus that has already been lost. Furthermore, when applying for insurance deals, drivers may be falsely declaring years of no claims that they don’t actually possess.

Common alterations such as taking a break from driving or becoming the secondary driver on a policy can invalidate a no-claims bonus. With many drivers switching insurers yearly to manage costs, keeping track of one’s driving history can become challenging.

If incorrect information is provided to a new insurer, it could render the entire policy invalid, warn motoring experts. They recommend checking the claims status before purchasing a new policy to ensure all details are accurate and prevent future issues, reports Birmingham Live.

Motorists can reach out to the Motor Insurers’ Bureau (MIB) to access a database containing their past driving records. Greg Wilson, CEO of Quotezone.co.uk and an expert on car insurance, 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. No claims discount protection is another hot topic for discussion this year, customers need to check the details through with their insurer, get a quote with and without the additional protection for comparison and make sure their bonus is protected continuously should they decide to switch providers.

“Normally protected discounts allow drivers to make up to two claims within a three to five-year period without losing their no-claims discount, but this can vary between insurers so be careful. A 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.”