Car Insurance News

Egg has just released information that indicates that one in four motorists have no protection policy for their no claims discount on their car insurance. The figure that is estimated for repairs alone is £336 million per annum.

The expenditure of 6.2 million people for repairs is believed to be 1.68 billion rather than lose their fee reduction, over the last five years.

The internet bank also predicts that over the next year a further 1.24 million drivers will follow suit.

However, there are positives from this movement. The last five years have seen 1.15 million motorists premiums rise by more than a fifth, the survey discovered.

Andy Deller, director of banking and insurance at Egg, said "Some motorists look to reduce the overall cost of their car insurance by not protecting their no-claims discounts,"

"This is often a false economy and can be risky as some one million people will end up paying for repairs to their cars rather than claim on their insurance and lose their discounts over the next 12 months."

However, there are other ways to make savings on car insurance.

Mr Deller continued: "Motorists looking to reduce their car insurance premiums should not cut the quality of their cover or lose their no claims discounts, but instead shop around to ensure they have competitive quotes.

"We estimate that motorists are currently paying £3.6 billion a year too much for their car insurance. This equates to about £120 per motorist."

It was also found that young motorists were most likely not to protect their no claims bonuses. In the age range of 25 to 34 it showed that 36% of drivers did not protect themselves as apposed to 18% of motorists aged 55 to 64.