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Mild March will help British drivers to rack up savings

London, April 07 -- The exceptional mild weather in March could lead to a much larger number of drivers retaining - or improving - their no claim discount in 2003 according to research by internet and telephone insurer, esure.

esure saw a marked drop in the number of reported accidents for March compared with previous years. This should in turn have a beneficial knock-on effect for many people's future premiums - especially if their claim-free year ended last month.

esure's analysis of the UK car insurance market indicates that the total discount gained each year by safer drivers in the UK who have more than four years' no claim discount tops £10bn. It also concluded that if the market were to improve its maximum NCD levels to 70% or above, the safest drivers in the country could save an additional £468m each year (esure's maximum NCD is 75% based on a 10 year scale where a further 1% is gained during years 6 to 10 of claim free driving).

Colin Batabyal, technical director at esure, said:

"March is often a dangerous month for both drivers and motor insurers. The weather is often poor with wet and icy conditions leading to relatively high levels of claims. This year, March was more like May across the country and there are potentially tens of thousands of people who will be holding on to their no claim discount for longer.

He added:

"The no claim discount is one of the greatest potential savings in the household. It can lead to differences of more than £600 per year in the premiums for the same car, with the same driver in the same street. It is also one of the few financial services where a person's behaviour influences their savings - better drivers get a better deal."

esure's research indicates that while the UK's total private car insurance premiums currently add up to around £9.4bn per year - this is discounted by over £12bn per year through no claim discounts. Furthermore, it is drivers who have four or more years no claim discount gaining by far the largest benefit, with premiums that are discounted by nearly £11bn per year.