Failure to protect their four years of no-claims discount is putting 7.7 million car insurance customers in the UK at risk of premium hikes, uSwitch.com has asserted.
The online price comparison and switching service claimed that a third of car insurance customers who have accumulated enough no-claims discount to qualify for protection are losing out by not protecting themselves.
Should they have an accident, they could see their car insurance premiums hiked by an average £92 a year.
Protection of their no-claims bonus costs £30.72 a year on average, according to uSwitch.com, which means car insurance customers could claim on their policy without affecting their discount.
It also points out that in some cases, car insurance policy holders with such protection will also be immune against a premium hike.
"As the cost of claims [continues] to rise, insurers will increase premiums to cover their costs," warned Ashton Berkhauer, uSwitch.com insurance expert.
"No-claims bonus protection plays a really important role as it covers motorists against premium hikes when they make a claim."
According to Privilege Insurance, drivers with at least four years of no-claims discount save more than £10,000 over the course of their lifetime through being safe drivers.
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