Motorists avoid claiming fear of losing no-claims bonus

More than one third (38%) of motorists are so concerned about losing their no-claims bonus and incurring higher premiums, they avoid making car insurance claims altogether, according to findings from Confused.com.

Research from the price comparison site identified that the likelihood of claiming on car insurance is dependent on age. The over 55s are much more likely to claim on their insurance if the cost of the accident is greater than the excess, with 65% saying they would do so. They are also less worried about losing their no claims bonus and rising premiums, compared to their younger driving counterparts. A massive 66% of drivers aged 18-24 avoid claiming for these reasons.

A no claims bonus is proof of a good driving record when it comes to calculating the driver's risk and can mean a discount of up to 50% for some insurance providers. Fear of losing this discount and facing higher premiums could account for young drivers shying away from claiming, with youth already going against them when it comes to getting a reasonable premium.

When making a claim where no third party is involved, there are factors which need to be considered. If repair work or replacement of the car is very expensive, insurance should be called upon so people are not out of pocket. However, if the cost of the damage is small and not significantly more than an excess, people should consider covering the costs themselves to keep their claim record clean and notifying their insurance company for information purposes only.

Will Thomas, head of motor insurance at Confused.com, said: "When it comes to making a claim, it is important to assess the financial impact it might have on insurance in the future, in terms of premium and no claims bonus. Although collecting years of no claims is beneficial, this should not deter people from making claims if they need to.

"The no claims bonus is useful when it comes to getting a reasonable quote and is easily transferrable from insurance provider to insurance provider, but there are other ways of driving the cost down in the event that claiming is unavoidable. By shopping around for the best policy, taking into account what excess can be afforded and what benefits would be required, including the option to protect no claims, drivers can make sure they are getting the most suitable policy at the best possible price."