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Motorists with zero no claims bonus will know how expensive car insurance
can be. Most insurance companies charge heavily for drivers without much
driving experience. But what if you have been driving for years, have
a clean driving record, but have always been a named driver on someone
else's policy?
Direct car insurer Admiral has looked at how much motorists with experience,
but without no claims bonus, should pay for their insurance and has suggested
ways they can cut their premium.
Admiral managing director, Jane Stone, said: "A no claims bonus
is a discount every car insurer offers to drivers who manage to have a
claim-free year. It is the easiest way to keep your premiums low. However
if you have not had your own insurance policy you cannot accumulate a
no claims bonus. In some cases this means that drivers with plenty of
experience have to pay a fortune for their insurance."
Most insurers heavily weigh policies for drivers without much driving
experience. This is because they are far more likely to have an accident
than an experienced driver.
The table below shows how the likelihood of being in a car accident drops
as the number of years driving rises:
| Number of years driving |
0 |
1 |
2 |
3 |
4 |
5 |
10 |
| Percentage of drivers involved in an accident |
13.86% |
11.94% |
11.29% |
10.43% |
10.48% |
9.64% |
9.05% |
So why should motorists with plenty of experience, but without a no claims
bonus pay more? Jane Stone, said: "It is understandable for insurers
to charge new motorists more for their insurance because they are a bigger
risk. But high premiums are unfair on drivers who have the experience,
but don't have the no claims bonus. Admiral will always take that experience
into account, and as long as a driver has held a valid licence and has
a clean driving record, will not penalise them heavily with huge premiums."
Admiral compared the cost of insurance for two young drivers without
a no claims bonus, but with a varying amount of experience. The table
below shows the annual premium with a range of insurers for the two examples:
| Example 1 |
Years driving experience |
| Insurance company |
0 |
3 |
| Admiral |
£1,759.80 |
£1,062.60 |
| People's Choice |
£2531,51 |
£1,607.73 |
| Churchill |
Will not quote |
£2,349.11 |
Example 1: 25-year-old male, without a no claims bonus,
living in southwest London and driving a 2001 Vauxhall Astra CDX.
| Example 2 |
Years driving experience |
| Insurance company |
0 |
3 |
| Admiral |
£824.25 |
£690.90 |
| Peoples Choice |
£743.86 |
£717.26 |
| Churchill |
Will not quote |
£793.01 |
Example 2: 30-year-old male, without a no claims bonus,
living in Bristol and driving a 2001 Mini Cooper.
These tables illustrate how different insurance companies treat drivers
with zero no claims bonus, but varying amounts of experience. And demonstrate
how important it is to shop around if you don't have a no claims bonus.
Jane Stone suggests other ways these motorists can cut their premiums:
"Go for a higher voluntary excess, keep your mileage low and limit
the use, perhaps choose a smaller car, but most importantly shop around.
Following our advice should help to lower your premium until you can build
up your own no claims bonus."
Issue date: 02-04-03
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