I paid for no claims bonus protection C but my insurance premium is now up

I insure my car with Zurich and pay extra without claims bonus (NCB) protection. I needed to make a claim this holiday season the first time and was told afterwards that my premium would elevate inspite of the insurance. The tutor said that although my NCB stayed a similar, the claim still affected the premium. I would not think the a myriad of people purchasing this extra insurance realise this. RC, Chipping Norton, Oxfordshire

You’re right, they don’t really C for the reason that price comparison website uSwitch discovered in a survey not too long ago. The concept NCB insurance can prevent premiums rising after a claim is often a misconception the insurance industry has, unsurprisingly, done nothing to discourage.

In fact the discount is actually a area of the premium that may be knocked off. For those who pay to protect the NCB and then suggest an incident the premium rises, often significantly. It may very well be so that you just pay more to insure the NCB than you can lay aside but if your premium rise. Belatedly your competitors and Markets Authority has realised the extent of public confusion possesses ordered insurers to help make the pricing and potential savings of NCB insurance clearer. Come August, all sales material must specify the amount an NCB will probably be worth precisely what the purchase price will be in the eventuality of a compensation claim, so customers can detect whether it’s worthwhile.

Zurich claims that its future policy wording will suggest that NCB won’t protect the general expense of an insurance plan which could increase after a major accident, just a no-fault one. “We recognise the frustration that ambiguity can cause and it is for that reason that we’re spending so much time to guarantee, like the rest of the industry, that any of us follow this new, clarified regulation for any benefit to our customers,” says a spokesperson.