Millions of UK motorists admit that they are clueless about what their car insurance policy actually covers.
A study of 2,000 drivers has shown that 10% of motorists do not know if they are covered for business use driving, or if their policy covers them to drive other vehicles. The same number are unsure if their insurance provides windscreen cover, whilst a fifth of us simply leave their car insurance details for their partner to deal with.
Shocking, nearly a third of those surveyed admit that they wouldn’t know what to do for insurance purposes if they had a car accident. And one in twenty motorists couldn’t remember the name of the company their vehicle was insured with.
Jason Smith, CEO of MoneyExpert.com, which commissioned the research, said: “Obviously, it’s important to know exactly what your car insurance actually covers. If you only have third-party insurance, for example, you could be left with a nasty surprise after an accident leaves your car needing expensive repairs.”
“But there are other bits of small print people don’t pay enough attention to – like whether the car is used for commuting or social purposes, or where it’s parked overnight.”
It seems many UK drivers also let their insurance automatically renew each year, without checking if they are getting the best deal and prices, with four in ten admitting that they ‘can’t be bothered’ to shop around. 13% of motorists let their policy automatically renew because they have no idea when their insurance is due for renewal.
MoneyExpert.com have released a guide on how to claim on your car insurance after the report discovered that three in 10 respondents confessed they wouldn’t know what to do if they had to make a claim.
Smith added: “Insurance providers advise that you contact them any time you have an incident in your vehicle, even if you don’t plan to make a claim.”
“It’s possible that this may increase your premiums slightly, but any underlying damage that you don’t report could invalidate your policy if it factors into a future claim. Our results found many people find dealing with insurance companies quite laborious – but that shouldn’t stop people from making sure all their paperwork is in order.”