Armed Forces to receive better motor insurance deal

The UK’s biggest insurers and brokers have committed to allowing armed forces personnel posted overseas to keep their motor insurance No Claims Bonus for up to three years, without paying cancellation fees if they are posted overseas at short notice.

The deal came into force on Armed Forces Day (25 June), and will benefit almost 265,000 people in the UK and abroad, including Forces families.

The changes have come about following an Armed Forces Covenant roundtable at No. 10 Downing Street which took place in January, and asked the financial services providers to recognise the needs of Armed Forces personnel in their products.

Previously, members of the Armed Forces who were deployed overseas could lose their motor insurance no claims discounts when they returned to the UK, meaning experienced drivers who had not been involved in road accidents were still liable to the same high premiums as newly qualified drivers.

Commenting on the news, Defence Secretary Michael Fallon said: “When our Armed Forces are posted overseas to protect our country they can lose out from the discounts the rest of us take for granted.  This is a welcome move from the leading insurers to help them get a fair deal.  I look forward to further pledges from businesses to support the Armed Forces Covenant.”

James Dalton, director of General Insurance Policy at the ABI, said: “People in the Armed Forces make a unique pledge to serve their country. UK insurers recognise this and have committed to allowing them flexibility with their motor insurance when they are posted abroad. It is important that Armed Forces personnel talk to their insurer about their policy particularly preserving their No Claims Bonus or any fees that might be wavered when they are stationed abroad.”