No-claims analysis released by Sainsbury's
No-claims bonuses on home insurance policies should be made less confusing for the customer, a provider has said.Sainsbury's Finance has released new analysis, showing that around 75 per cent of such policies do not provide details on how the discounts work.Further, the provider said that eight per cent of the policies charge an extra penalty on those customers who make a claim during their discount bonus period by cutting it by a year or more.Neil Laird, home insurance manager for Sainsbury's, said: "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."Sainsbury's found that just 76 per cent of home insurance policies offered a no-claims bonus, compared with "almost all" car insurance policies.Mr Laird added: "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.
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