How careful driving can save you more than $700 on your car insurance

It has recently been found that careful driving can reduce insurance costs and save you more than £700.

Car insurance premiums are now falling by £745, after just a year of no claims discount.

No-claim discounts (NCDs) are premium reductions that insurers grant when customers reach annual milestones in which they make no claims on a policy.

This means that if you don't claim insurance for any damage to your vehicle for a year, you will have some extra money left over, according to This is money.

Price comparison website Compare the Market said the average driver's car insurance bill fell from £2,304 without these discounts to £1,560 for a year of NCD in 2023.

That's a drop of £745, or almost 32 per cent.

Over two years of NCD the policy falls again and this time by £354, which is 23 per cent.

And in the third year it drops by £219, or 18 percent.

In 2022, most motorists paid £1,520 for non-NCD cover.

This fell by £507 to £1,013 after a year with no claims.

It dropped a further £249 after two years and £120 in year three.

However, rising insurance premiums are still a problem for motorists.

Even those with years of NCDs feel the pinch.

According to Compare the Market, these costs have increased year-on-year by £546 (54 per cent) for drivers with one year of no claims, £441 (58 per cent) for drivers with two years and £342 (53 per cent). ) for drivers with three years.

Similarly, drivers with ten years without claims have seen their premiums rise by an average of £186 (54 per cent).

Insurers say premiums are rising to cover their own rising costs, including high repair costs, cars that are more expensive to repair, energy costs and higher wages.

But Compare the Market's figures are based on the premiums offered to drivers through the platform and do not really reflect what drivers pay.

Other figures from trade body Association of British Insurers show that the average premium paid in 2023 was £543, up from £434 in 2022.

In most cases, drivers can take their NCD with them when switching insurers, as long as this has been confirmed with their new insurer and written evidence of their existing NCD is provided.

Compare car insurance market expert Julie Daniels said: “The easiest way to check your NCD policy is to look at your insurer's documentation, which may have been sent by post or may be available online. “

“If you can't find the details in your renewal notice or other paperwork, you may want to contact your provider directly.”

It comes as we told you about a little-known trick that can help you lower the cost of your car insurance.

Data from the Association of British Insurers (ABI) shows that drivers who took out insurance in January, February or March paid an average of £478 for an annual policy.

It means premiums have risen by 16% compared to the same period last year – faster than inflation.

Car insurance costs have risen to their highest level since the fourth quarter of 2019, when motorists paid an average of £483.

But there are tricks to cutting costs if you know how.

You can start by choosing the right day to renew your policy.