UK drivers could be left with “eye-watering” bills after making an insurance claim if they do not check the fine print in their policies for “loopholes,” consumer website Which? has warned.
The consumer group analysed 49 policies from 34 insurers and found “gaps in cover for personal belongings, often toothless legal expenses cover, and surprising exclusions for courtesy cars.”
While almost all policies contain some form of personal belongings cover, which pays out for repair and replacement costs for items damaged or stolen from the vehicle, the study found that not all possessions are included, with just two policies protecting cash and documents and only three covering credit cards. Four in 10 also do not cover mobile phones.
In terms of legal expenses coverage, only a quarter (24%) of policies pay out to recover illegal clamping or towing fees, and just three in 10 (31%) provide cover for legal costs related to the car’s licence plate being cloned.
Almost all policies also have some provision for courtesy car cover as standard, but only a fifth offer a temporary replacement if the vehicle is stolen and just one in five do so if it is written off. Most policies offer policyholders the option to upgrade this feature to make coverage more comprehensive, but drivers should not consider full cover a given, Which? cautioned.
The research also found that the “rarest” feature offered by insurers is guaranteed cover for driving other cars. Drivers of certain ages (usually under 25) and those in certain occupations are generally excluded from this cover, but in more than a third (37%) of policies, it applies only in emergencies.
About seven in 10 (69%) policies offer help in the event a motorist fills their petrol tank with diesel – or vice versa – but only one in five (18%) will assist with both draining the tank and repairing the engine. Half (51%) of policies do one or the other.
“Our research shows that motorists risk facing hefty bills when things go wrong as a large number of policies don’t cover incidents or possessions you might expect,” said Jenny Ross, Which? money editor. “With the cost-of-living biting, this means car problems could be disastrous for those on low incomes, or with limited savings.”
“We would urge drivers to read the small print,” she added. “If you’re comparing two similarly priced policies, the bills you can rack up by falling foul of car insurance loopholes could dwarf the extra amount you would pay for the more expensive cover.”
Ross also advised policyholders who are unhappy with how their insurers have handled their claims to always shop around when it is time to renew.
“You could save hundreds of pounds by switching insurers, while getting the right cover to suit your needs,” she said.
Meanwhile, the Association of British Insurers (ABI) reminded motorists to always check their policies to make sure that the coverage suits their needs.
“Every day motor insurers pay £22 million in claims to private motor insurance customers, with 99% of all claims paid,” a spokesperson told Lancashire Telegraph. “Insurers remain committed to ensuring value-for-money cover and want drivers to understand exactly what they are covered for. We urge motorists to check the scope of cover provided and speak to their motor insurer if unclear.”
