Warning for drivers of more than nine years over common insurance misconception

Motorists with a long history of safe driving have been alerted that the savings they expect may not materialise. Drivers boasting nine years without a claim are being told they're "unaware" that their discount accumulation has essentially plateaued.

Although no-claims bonuses don't technically expire, industry specialists point out that most drivers don't recognise that after accumulating nine years of no claims, the benefits tend to level off. Insurance companies are unlikely to offer additional discounts once drivers hit the nine-year no-claim mark, leading to warnings for those who believe their premiums will continue to decrease.

There are also other less obvious factors that could negate NCD protection. For instance, switching from being the main driver to a named driver on a policy can erase accumulated savings.

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A spokesperson for Compare The Market explained: "A no-claims bonus doesn't have an expiry date, as such. As long as you have a valid car insurance policy without any claims, or go for less than two years between policies, your NCD (no-claims discount) should remain active."

"However, there's a time limit on the maximum number of years you can build up your no-claims. This can vary among providers, but most will cap the maximum no-claims bonus at around nine years. Once you reach this, you won't get a bigger discount on the following no-claims years.", reports Birmingham Live.

A spokesperson for Quotezone.co.uk remarked: "It true that nine years is the limit for building up a no-claims discount? Unfortunately the answer is largely yes, most UK insurers will not offer further discounts after 9 years of no claims, but not all of them."

Greg Wilson, CEO and car insurance specialist, highlighted that while many drivers are eager to safeguard their no claims discount, they are "unaware of the simple things" that can nullify their protection.

He explained: "Without realising, certain changes to the policy, such as becoming a named driver instead of the main driver or having a gap of more than two years, say across the pandemic when they weren't driving could wipe clean the no claims build-up and void the insurance policy."

Wilson also noted: "A no claims discount can be one of the biggest factors when it comes to the cost of a policy. Unfortunately, a lot of people perhaps don't know these big 'no no's' that can break their no claims and eradicate the discount they've built up. The difference between 0 and 5 years no claims bonus can be significant too, estimating 30% for one claim-free year and 60% for five claim-free years although again, each insurance provider may be different so drivers need to compare."

He added: "No claims discount protection is another hot topic for discussion this year, customers need to check the details through with their insurer, get a quote with and without the additional protection for comparison and make sure their bonus is protected continuously should they decide to switch providers."