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Sainsbury's
Home Insurance calls on other providers to make their policies on no-claims discounts
less complicated and confusing - 26 November 2008 __________________________________
- Customers
missing out on huge savings
- Many home insurers make it difficult for
customers to understand their position on no-claims discounts – that's if they
have one at all
- Sainsbury’s Home Insurance offers a no-claims discount
on its policy of up to 30%(2).
Sainsbury’s
Finance issued a challenge to the home insurance market today as new research
revealed that home insurers continue to lag behind car insurers in terms of rewarding
customers with no-claims discounts. The findings, commissioned by Sainsbury’s
Home Insurance, reveal that while almost all car insurance policies offer a no-claims
discount, one in four (26%) of home insurance policies don’t(1), leaving customers
missing out on potentially huge savings. Furthermore, of those home insurers that
do offer it, 8% penalise customers for making a claim by removing more than one
year of no-claims discount, even if they have built up several years no-claims
discount. Sainsbury’s
Finance, whose home insurance offers up to 30% no-claims discount as standard(2)
and a further saving if you choose to purchase no-claims discount protection(3),
believes that many insurers are treating their customers unfairly, because their
home insurance customers are losing out on potentially huge savings on their premiums.
Also, if homeowners do make a claim, their premiums may rise dramatically because
they have not built up a no-claims discount, which can reduce the impact of any
increase. The
research(1) also shows that, of those home insurance policies that offer a no-claims
discount, 74% provide no details on how they work, making it very difficult for
customers to understand their position. Neil
Laird, Home Insurance Manager for Sainsbury’s, 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.” 
Neil
Laird continued, “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.” Information
About Sainsbury’s Home Insurance: As well as being competitively priced, the
bank also offers an extensive range of cover and benefits. This includes:
- Unlimited
buildings cover
-
Unlike some home insurers, Sainsbury’s Home Insurance does not apply charges for
customers paying their premiums by direct debit
-
Maximum no-claims discount of up to 30%
-
No-claims discount protection(3) · Cover for accidental damage - even by pets(3)
- Up
to £5,000 cover on student belongings(3)
Unlike
some companies, by offering NCD protection after five claims-free years, Sainsbury's
Home Insurance allows you to make one claim in any year without losing any of
your no-claims discount. Notes
about this Sainsbury's press release (1)
Sainsbury’s Bank commissioned Defaqto Ltd to conduct research into the number
of home and car insurance policies that provide no claims discounts. This was
carried out on 7 Oct 2008. (2)
Only eligible for NCD Protection after payment of a small additional premium.
(3)
Additional cover can also be purchased at an additional premium Source:
Sainsbury’s Finance
More
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