IT HAS recently been revealed that driving carefully can slash insurance cost and save you more than £700.
Car insurance premiums now fall by £745 after just year of having a no claims discount.
GettyIt has recently been revealed that driving carefully can save heaps of cash[/caption]
No claims discounts (NCDs) are reductions in premiums that insurers grant when customers reach yearly milestones of not claiming on a policy.
This means going one year without claiming insurance for any damage caused to your vehicle will leave you with a bit of extra cash, according to This Is Money.
Price comparison website Compare the Market said that the average driver’s 2023 car insurance bill fell from £2,304 without these discounts to £1,560 for one year’s NCD.
That is a drop of £745, or almost 32 per cent.
For two years of NCD the policy drops once again and this time by £354 which is 23 per cent.
And in the third year it drops by £219 or 18 per cent.
In 2022 most motorists paid £1,520 for cover without NCD.
This fell by £507 to £1,013 after one year without claiming.
It dropped an additional £249 after two years and £120 in year three.
However, rising insurance premiums are still pummelling drivers.
Even those with years of NCDs are feeling the pinch.
According to Compare the Market these costs have increased by £546 (54 per cent) year-on-year for drivers with one year of no claims, £441 (58 per cent) for those with two years and £342 (53 per cent) for drivers with three years.
Similarly, drivers with ten years of no claims have seen their premiums jump by £186 (54 per cent) on average.
Insurers say premiums are rising to cover their own rising costs which include inflated repair costs, cars being more expensive to repair, the cost of energy and increased wages.
But Compare the Market’s figures are based on the premiums that drivers are quoted through its platform and don’t actually reflect what drivers pay.
Other figures from the Association of British Insurers trade body show that the average 2023 premium paid was £543, up from £434 in 2022.
In most cases drivers can take their NCD with them when switching insurer, as long as this is confirmed with their new provider and written proof of their existing NCD is provided.
Compare the Market motor insurance expert Julie Daniels said: “The easiest way to check your NCD policy is to look at the documentation provided by your insurer, which may have been sent in the post or might be available online.”
‘If you cannot find the details in your renewal notice or other paperwork, you may wish to get in touch with your provider directly.’
It comes as we told of a little known trick that could help you slash the cost of your car insurance.
Data from the Association of British Insurers (ABI) shows that on average drivers taking out insurance in January, February or March paid £478 for an annual policy.
It means premiums have gone up by 16% from the same period last year – faster than inflation.
Car insurance costs have shot up to their highest rate since quarter four in 2019, when drivers were shelling out an average £483.
But there are tricks to cut costs if you know how.
You can start by choosing the right day to renew your policy.