Home insurance Updated:
Home insurance policies on no-claims discounts are too complicated, with customers missing out on huge savings and finding it hard to understand their no-claims position say Sainsbury's Finance.
Research on UK home insurance has shown that insurers are way behind providers of car insurance when it comes to rewarding customers with no-claims discounts. The research, (commissioned by Sainsbury's Home Insurance) shows that nearly all car insurance policies offer a no-claims discount, yet just over a quarter (26%) of home insurance policies are missing this potential for saving. It doesn't stop there though; 8% of insurers that do offer a no-claims discount impose a 'making a claim' penalty that removes more than one year of no-claims discounts, even if they have built up several years discounts.
Sainsbury's Finance believe that customers are being treated unfairly by their home insurance providers. Customers are missing out on potential premium savings, and may also experience dramatic premium rises if they make a claim having no build up of no-claims discounts.
Home Insurance Manager for Sainsbury's, Neil Laird, explains: "A no-claims discount can significantly reduce your premiums. For example, after five years of no claims, our customers could benefit from a discount of up to 30%(2). We don't see any reason why insurers should offer no-claims discounts on their motor insurance policies but not on their home insurance, and it is alarming that so many providers are not being upfront and transparent about their no claims provision."
"While a no-claims discount won't necessarily stop premiums going up the next year, it can provide a significant saving and can soften the impact of any unrelated rise in premiums after a claim so it's worthwhile shopping around for a policy that allows you to earn the discount."
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