New research released by Sainsbury’s Finance has revealed that UK home insurers continue to lag behind car insurers for rewarding customers with a no-claims discount.
The findings which were commissioned by Sainsburys Home Insurance, reveal that just one in four (26%) of home insurance policies offer a no-claims discount, preventing customers from benefiting from potentially huge savings. What's more, 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 discounts.
Sainsbury’s Finance, whose home insurance offers up to 30% no-claims discount, believes that many insurers are treating their customers unfairly. Also, if homeowners do make a claim, their premiums may rise dramatically because they have not built up a no-claims discount.
Home Insurance Manager for Sainsbury’s, Neil Laird, said: "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%. 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 following year, it can provide a significant saving and reduce the impact of any unrelated rise in premiums after a claim. So it's worthwhile to shop around before you buy and look for a policy that allows you to earn a no-claims discount.