Drivers warned of dangerous car insurance policy which offers 'lower level of protection for a cheaper price'
Car insurance prices are set to rise further
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Experts are warning drivers to be careful when buying car insurance as some policies may not have suitable levels of protection, with “essential” measures not included.
Data from the Association of British Insurers found that insurance providers paid out £2.4billion in claims in the first quarter of 2023, a 14 per cent increase compared to the same period last year.
Insurers are also paying more to provide drivers with a replacement car while they wait for their vehicles to be repaired, with providers pushing the cost onto the price of insurance.
WATCH NOW: Car insurance prices continue to rise
Speaking to GB News, Julie Daniels, motor insurance expert at Compare the Market, acknowledged the issues drivers were facing when getting cover for their car.
According to the price comparison website, drivers will pay an average price of £848 per year for comprehensive cover, £1,296 for third-party, fire and theft, and £1,840 for third-party only.
She said: “The rising cost of car insurance is understandably causing concern for many motorists, with our research showing motor premiums have increased by 50 per cent year-on-year.
“Many car insurers now offer different levels of comprehensive cover, some of which provide a lower level of protection for a cheaper price.
“For example, ‘essential’ policies may not offer windscreen cover, personal belongings cover, or car key cover.
“We’ve seen an increase in popularity for these policies over the past few months, as households look to save money during the cost of living crisis.”
The expert acknowledged how the lower price of “essential” policies may seem attractive to motorists, but they will not be as well protected.
With these policies, a number of key options will be left out, and while the total cost will be lower, drivers could find themselves with huge problems if they are involved in an accident.
If a driver is involved in a minor accident or finds a chip in their windscreen, they can expect a repair cost of between £40 and £120.
However, replacing a windscreen can range from £180 to more than £1,600, depending on where they live and the car they drive.
Julie Daniels continued, saying: “Ultimately, it’s up to the driver to weigh up the cost versus the level of cover based on their needs.
“It’s worth checking with your provider if you need any information about what cover you may need.”
Drivers could save up to £159 if they shop around, according to a report from Consumer Intelligence in September 2023.
Money saving expert Martin Lewis has urged motorists to look into price comparison websites to save money on their insurance.
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Some 'essential' measures could be left out of cheaper policies
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He called on drivers to “take a few minutes to check if you’re overpaying”, with one driver reporting their renewal quote had dropped from £1,100 to just £488.