Protecting a no-claims bonus could cost more than it's worth
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Anyone paying for a "protected" no-claims bonus for their car insurance could be wasting their money. According to the comparison site Confused.com there are "staggering inconsistencies" in the charges insurers impose on drivers to protect their NCB.
"The maximum no-claims bonus is commonly accepted to translate to a discount of 60-75 per cent, which encourages many motorists to choose the option," says Will Thomas of Confused.com. "But every insurer has a different procedure when calculating a premium, and no insurer simply takes 60 per cent off the final figure.
"So, the value of protecting an NCB is brought into question, particularly considering that protection doesn't stop insurers reassessing a driver's risk in the event of an accident. They may raise a premium, regardless of how many years no claims the motorist's record shows." The varying charges for protecting a no-claims bonus add to the problem, he says. Some insurers charge nothing, while others ask for up to 33 per cent of the premium. Youngsters are worst hit; the average cost of protecting an NCB for a male aged 23 is 12 per cent of the premium.
"While NCB can be a valuable asset when it comes to keeping car-insurance costs down, paying to protect it needs to be seriously looked at," says Mr Thomas.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments