Experts are warning motorists to make vital checks before buying “budget-friendly” car insurance policies which may leave them uncovered on basic requirements.
A survey by Which? found that while cheaper policies are desirable in the short-term, they could leave motorists high and dry if they need to make common claims such as windscreen damage.
The report highlighted how cheaper policies offered by providers, Hastings, Quote Me Happy, Sainsbury’s Bank and Tesco Bank, removed cover for glass damage as part of its policy offering.
Out of the surveyed drivers, a fifth said windscreen damage was one of the most common reasons to claim.
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Windscreen damage was one of the most common reasons to claim
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Insurers price policies for customers in different ways and some motorists risk being quoted a cheaper premium for one provider’s standard policy compared to an ‘essentials’ policy from another provider, Which? warned.
To combat this, customers are being encouraged to check price comparison sites as well as getting quotes directly from providers, such as Direct Line and NFU Mutual.
Rocio Concha, director of policy and advocacy at Which?, said: “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.”
Drivers would be more likely to pick insurance policies which are cheaper and offer less protection as premiums remain at record levels.
Data from the Association of British Insurers showed that average motor cover was 25 per cent more expensive in 2023 than in 2022.
Looking at more expensive cover options, Which? found 60 policies offered by 28 insurers, including seven “essentials” products from Admiral, Churchill, Direct Line, Hastings, Quote Me Happy, Sainsbury’s Bank and Tesco Bank.
When ranked by consumers, Sainsbury’s came out top with 60 per cent of surveyed drivers likely to pick this option, while Hastings’ essentials policy scored the lowest at 44 per cent.When looking at both value for money and cover, NFU Mutual was named most impressive, achieving a customer satisfaction score of 81 per cent.
AXA came in second with a customer score of 70 per cent but fell short with its policy score, receiving only 57 per cent.
LV= was highly recommended by Which? with a customer score of 70 per cent with the provider found to have consistently good cover and a policy of offering a lifetime repairs guarantee.
Lloyds Bank, however, ranked the lowest when it came to customer score with 59 per cent. Admiral, Sainsbury’s Bank, 1st Central, Hastings Direct and esure received customer scores of 60 per cent respectively.
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For money and cover, NFU Mutual was named most impressive by customers
PA
Insurance firms have been required to provide fair value for customers since the introduction of the Consumer Duty last year, by the Financial Conduct Authority.
Under the rules, firms are required to make sure their products meet the needs of their customers and that customers understand the information they are given before they make their choices.
Concha added: “Value for money remains a key consideration for motorists shopping around for insurance and the FCA must ensure that firms that sell policies with major exclusions are clear about these to their customers.”