No-claims bonus protection called into question
Protecting a no-claims bonus can cost more than it is worth.
The claim is made by Confused.com, which is warning motorist that insurers calculate no-claims discounts in different ways, meaning that the impact of the bonus on a premium varies widely.
According to the price comparison website, this brings the value of protecting a no-claims discount into question, particularly as insurance providers can reassess a driver’s risk in the event of an accident, and can raise a premium as a result.
The firm also found that while young drivers in particular may value their no claims discount, they are paying the most for bonus protection, with the average cost for a 23 year old male 12% of premium.
Head of motor at Confused.com, Will Thomas, says there is currently no consistency as some insurers offer the extra protection free and others can load the premium by up to 33%.
Mr Thomas recommends that the only way consumers can make sure they are getting the best deal for bonus protection is to go online and compare policies side by side.
Category: Car Insurance News, Insurance News
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