Are you using protection?

A study by Confused.com has uncovered staggering inconsistencies in the charges insurance providers impose on drivers wishing to protect their No-Claims Bonus (NCB).Furthermore in some cases drivers may not benefit from the huge discounts often associated with the product.

With 72% of motorists looking for ways to cut the costs of their motor insurance the question of whether or not to protect the NCB weighs heavily. The maximum NCB is commonly accepted to translate to a discount of 60-75% depending on provider, therefore many buyers of motor insurance chose this option.

However, every insurance provider has a different underwriting procedure when calculating a premium and no insurer simply takes 60% off the final figure. With this in mind, the value of protecting NCB is brought into question, particularly considering that protection doesn't stop insurance providers reassessing a driver's risk in the event of an accident and raising a premium accordingly, regardless of how many years no claims the motorist's record shows.

Furthermore the charges for protecting a NCB vary wildly from provider to provider. Young drivers in particular may value NCB but the study found that these drivers are paying the most for the privilege of protection as some insurance providers choose to cash in on cautious drivers. Whilst some insurance providerswill allow drivers to protect their NCB for no additional charge, others will ask for up to 33% of the premium, with the average cost of protection for a 23 year old male standing at 12% (£105) of the premium.

Head of Motor at Confused.com, Will Thomas comments:  "Whilst NCB can be a valuable asset when it comes to keeping car insurance costs down, it needs to be seriously considered if motorists are looking to cut costs. It appears that there is currently no consistency in the motor insurance industry when it comes to putting a price on guaranteeing a clear claims record. It is a mystery as to why some providers offer this extra for free and others want almost a third of the policy price for the privilege.

Whilst there is no consistency or transparency when it comes to justifying these costs, the only way consumers can make sure they are getting the best deal for this protection is to go online and compare each policy side by side."