Drivers can reduce their car insurance premiums with a no-claims discount for a year, new data has revealed.
After a year of no-claims discount, your car insurance premium can be reduced by up to £745, according to new research from comparison site Compare the Market. Additionally, premiums also fall significantly in the second claim-free year, with a reduction of £354 and £219 in the third year.
Drivers who don't make a claim for an 'extended' period can enjoy significant savings, with the average price difference in premiums for a driver who doesn't make a claim compared to a driver who doesn't make a claim for 10 years is £1,772 on average.
Market Comparison says a variety of factors affect the cost of insurance premiums, including the driver's age and address, the make and model of the car and the car mechanic's annual mileage, but using no-claims discounts can make an 'extra' difference to premiums. Cover cost.
Julie Daniels, car insurance expert at Compare the Market, says: “The easiest way to check for a no-claims discount policy is to look at the documentation provided by your insurer. Documents may be mailed to you or available online.
“If you cannot find the details in your renewal notice or other documentation, we recommend contacting your service provider directly.”
Rising insurance costs have rattled drivers. Data from Compare the Market shows that drivers with no claims in a year saw their cover increase by £546 (54%) compared to the previous year. This will increase by £441 for drivers with a two-year claim-free period, and £342 for three years. Even for drivers who received a no-claims bonus over a 10-year period, average premiums rose by £186.
Research group earlier this year Which? We've revealed why some drivers are paying hundreds of dollars more for car insurance.
The consumer group used data from the comparison site Go.Compare to calculate the average difference between the prices paid by annual and monthly customers from December 2018 to September 2023.
Car insurance customers who buy a policy monthly can end up paying hundreds of pounds more than those who pay annual premiums, and the gap on a cash basis appears to be growing.
Younger drivers, who often pay the highest premiums, may have higher monthly payments.
The study found that in September 2023, people paying for annual cover on a monthly basis would pay an average of around £309 more per year than those paying in one go.
The average annual monthly payment cost was £892, while the cost of one annual payment was £583.
The average gap in September 2022 was £251 (£738 paid monthly, £487 paid annually).
The typical gap in December 2018 was £207 (annual payment of £460, monthly payment of £667).
Younger drivers, who often pay the highest premiums, may have higher monthly payments. Which one? said.