Protecting Your No-Claims Bonus Could Cost You in the Long Run

9th July, 2009

The accident management specialists, Car Crash Line, have released national research showing only a third of UK drivers would automatically inform their insurer of an accident they had been involved in, even if the accident was not their fault, in order to protect their no-claims bonus.

Under the terms of many car insurance policies, failure to report an accident (even if you are not at fault) invalidates the policy - which could mean there are many more uninsured drivers on the road today, adding to the two million who drive knowingly without insurance. 24 percent of drivers questioned said they would expect a premium increase, even if the accident was not down to them.

Director of the Car Crash Line Group,Austin Snelgrove, said of the findings:

British drivers also said submitting a car insurance claim was too stressful, higher than securing a mortgage, filling in a tax return, changing banks or applying for a passport. 20 percent of women drivers questioned said they wouldn't bother to submit a claim due to the 'hassle factor' and 15 percent of those questioned said they would 'expect lots of red tape and difficult forms to complete.'

Malcolm Tarling, of The Association of British Insurers (ABI), added:"There seems to be a lack of understanding amongst many UK drivers with regards to their insurance policies and contractual obligations. Drivers should report any accident to their insurer even if they don't wish to claim. Doing so shouldn't necessarily lead to any premium increase."

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