Warning automobile insurance coverage insurance policies may depart drivers uninsured towards frequent claims | EUROtoday

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Some low-cost insurance coverage insurance policies may depart drivers uninsured towards frequent claims comparable to cracked home windows, new analysis has discovered.

Consumer group Which? urged motorists who’re searching for cheaper insurance policies as premiums rise, to examine the small print after discovering gaps that might depart drivers out of luck ought to they should make a declare.

Which? seemed on the cowl in additional than 60 insurance policies provided by 28 insurers, together with some primary merchandise and located that some stripped-back insurance policies didn’t have cowl for glass injury.

This is a standard declare drivers made, in response to the buyer group’s analysis and the essential insurance policies – which are sometimes positioned greater up on comparability web sites than costlier complete insurance policies – may depart motorists susceptible to going through a hefty invoice for repairs.

Rocio Concha, Which? director of coverage and advocacy, stated: “You can’t be on the road legally unless you have car insurance, but with premiums at eye-watering levels, many motorists are being pushed towards stripped-back policies.

“Concerningly, our research shows that some basic policies lack cover for common claims, meaning that a cracked windscreen could leave some drivers facing hefty repair bills they’d assumed the insurance would cover.”

The common value paid for motor insurance coverage within the last quarter of 2023 was round a 3rd, or £157 in money phrases, greater in contrast with a 12 months earlier, in response to figures from the Association of British Insurers (ABI).

Between October 1 and December 31 2023, the common value paid for personal motor cowl was £627, up from £470 throughout the identical interval a 12 months earlier.

Last week, the ABI stated it was exploring numerous methods to deal with the rising value of motor cowl.

This included the trade doing extra on transparency round which autos have been extra expensive to insure, to assist folks make extra knowledgeable decisions, and persevering with to crack down on fraud.

Longer restore occasions, greater restore prices, and the rising value of substitute autos had been including to the price of premiums, in response to insurers.

The ABI additionally highlighted insurance coverage premium tax (IPT) as a supply of prices, saying it added £67 to the common coverage. IPT is a tax on insurers which feeds into the prices clients pay.

An ABI spokesperson stated: “Our members fully understand the importance of providing fair value to customers and work hard to deliver it. Our data shows that 97% of private motor insurance claims are accepted, and the average claim is over £4,000.

“Motor insurance is a legal requirement and each driver’s circumstances will be different, so by offering a range of products, insurers are meeting customer demands and helping them stay on the road.

“Understanding what your policy includes and any excesses involved is vital and our members are committed to ensuring information is presented in a way that is as straightforward as possible.

“When looking for motor insurance, we would always recommend shopping around to find the policy that best suits your needs.”