Some cheap insurance policies could leave drivers uninsured against common claims, such as broken windows, according to new research.
Consumer group Which one? urged motorists looking for cheaper policies as premiums rise to check the fine print after finding loopholes that could leave drivers out of luck if they had to make a claim.
Which? He examined the coverage of more than 60 policies offered by 28 insurers, including some basic products, and found that some reduced policies had no coverage for glass damage.
This is a common claim drivers make, according to consumer group research, and basic policies, which often rank higher on comparison websites than more expensive comprehensive policies, could leave motorists at risk of facing a hefty repair bill.
Rocío Concha, which one? policy and advocacy director, said: “You can't drive legally unless you have car insurance, but with premiums at exorbitant levels, many motorists are being forced to opt for simplified policies.
“Worryingly, our research shows that some basic policies lack coverage for common claims, meaning a broken windshield could leave some drivers facing high repair bills that they had assumed insurance would cover.”
Which? He examined the coverage of more than 60 policies offered by 28 insurers, including some basic products, and found that some reduced policies had no coverage for glass damage.
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The average price paid for car insurance in the final quarter of 2023 was around a third, or £157 in cash terms, higher than the previous year, according to figures from the Association of British Insurers (ABI).
Between October 1 and December 31, 2023, the average price paid for private car cover was £627, up from £470 during the same period last year.
Last week, the ABI said it was exploring several ways to address the rising cost of motor coverage.
This included the industry making more transparency around which vehicles were most expensive to insure, to help people make more informed decisions and continue to crack down on fraud.
According to insurers, longer repair times, higher repair costs and rising prices for replacement vehicles had added to the cost of premiums.
The ABI also highlighted insurance premium tax (IPT) as a source of costs, saying it adds £67 to the average policy. The IPT is a tax that taxes insurers and that influences the costs that clients pay.
An ABI spokesperson said: “Our members fully understand the importance of providing fair value to customers and work hard to deliver this. Our data shows that 97% of private car insurance claims are accepted and the average claim is over £4,000.
“Car insurance is a legal requirement and every driver's circumstances will be different, so by offering a range of products, insurers meet customer demands and help them stay on the road.
“Understanding what your policy includes and the excesses involved is vital and our members are committed to ensuring information is presented in the simplest way possible.
“When looking for car insurance, we always recommend shopping around to find the policy that best suits your needs.”
