Protecting No Claims discount – Is it worth it?

In these times of rising motoring costs, motorhome drivers are being encouraged to think long and hard about protecting the No Claims Discount (NCD) on their motorhome insurance policy.

A report out this week by a leading online motor insurance comparison site suggests that drivers who have an accident and have no NCD protection face massive increases in their insurance premiums compared to those who do have NCD cover. A comprehensive collection of data from dozens of motor insurers shows on average that a driver with 5 years NCD but with no NCD cover would face an increase of £130, roughly a 37% increase in premiums, if he did have an accident. The same driver with 5 years NCD protected would incur an extra cost of just £10.

It would appear to be quite an easy decision to make but insurance experts remind drivers that they are paying an average of £33 a year for the protected NCD policy. This of course offers drivers the peace of mind that insurance is all about, but a driver who buys NCD protection and never has to use it will be paying hundreds of pounds more over his driving lifetime.

It is not an easy decision to make and Pete Harrison a motorhome insurance expert said: “Building up your no claims discount over a number of years, can be a valuable commodity and can significantly reduce the cost of your premiums.

“Having reached the five year no claims discount level, many motorists will be reluctant to take the risk of losing it and may consider paying extra to protect it. With premiums on average rising by 37 per cent if you make a claim, paying extra to protect your policy against this sharp hike might be worthwhile. But be warned, if you protect your policy but don’t make a claim for a number of years, you could find that you are eroding any potential savings.”

Motorhome owners will find that looking around before they buy protected NCD is a must. The companies differ vastly in policy small print with some companies not penalising protected status even after multiple accidents whereas others will only allow two.