More Than car insurance issues no-claims bonus warning

More Than has found that motorists are splashing out hundreds of pounds to protect the no-claims bonus on their car insurance.

Drivers are prepared to spend an average of £235 on repairs, rather than risk losing a bonus that has been built up over several years, with one motorist in ten happy to splash out more than £500 to protect their discount, a survey by the insurer has revealed.

And More Than has found that there is reason to worry, with companies traditionally reducing a no-claims bonus by two years after a claim - which could add as much as 50 per cent to car insurance premiums.

But by protecting a no-claims bonus, or switching to another insurance provider with price guarantees, motorists do not have to worry about their bonus after an accident.

David Pitt, of More Than, commented: "Our survey demonstrates just how important a motorist's no claims bonus is to them, to the point that they are prepared to pay hundreds of pounds for damage to their cars rather than claim after an accident."

Over a third of drivers said they had damaged their car and not claimed on their insurance, More Than found, with 28 per cent admitting the main reason for not making a claim was because they were concerned about their no-claims bonus.

Many insurers now give motorists the option of protecting a no-claims bonus once it has been built up - often allowing drivers to make a certain number of claims before premiums are affected.

But this too can be problematic, More Than's Mr Pitt warned, and in some cases car insurance premiums can rise after an accident regardless of bonus protection.

"So they are not caught out by some of the so-called 'protected' no claims bonus schemes on the market, we recommend that all drivers check their policy wording. Their insurer may either limit the number of claims allowed or even reserve the right to increase premiums after a claim," Mr Pitt cautioned.