Car insurance customers are often hit with “confusing” terms and conditions which can catch out owners and stop them from saving money. New data from car insurance experts Cuvva warned that over half of motorists in the UK do not know what their policy covers them for.
Alongside this, over two-thirds have admitted to not reading their policies in enough detail.
Freddy Mcnamara, spokesperson for Cuvva warns providers “have a duty” to provide clarity on what policies mean for drivers.
Understanding some simple phrases may help drivers understand what they are covered for meaning they can protect themselves better while on the road.
Drivers unaware of what they can receive may also miss out on extra savings and payouts they never even knew existed.
Motorists could miss out on massive savings
Experts warn road users could be fooled by ‘confusing’ insurance terms
Mr Mcnamara said: “Car insurance providers are known for a lack of transparency around their policies, due to extremely confusing T&Cs.
“It’s not surprising that more than half (53%) of British drivers don’t know what their car insurance policy covers them for, and almost two-thirds (63%) don’t read their policy documents in detail.
“Car insurance terms can be confusing, but insurance providers have a duty to provide customer clarity on what exactly they are covered for, and what they mean.”
Analysis from the firm found that 32 percent of road users were not aware they were covered for “uninsured loss recovery” on their agreement.
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The British Insurance Brokers Association (BIBA) says this is a form of legal expense costs to pay for a solicitor to pursue a guilty third party
They say this is used to recover your uninsured losses such as policy excess charges and hire car costs.
As well as a personal injury claim, the uninsured loss recovery also provides drivers with a free 24 hour legal advice service.
The system is useful for Third Party Fire and Theft policyholders who may not be completely covered for all types of accidents.
Cuvva’s analysis revealed that one in five road users were not aware that insurance firms offered a cooling-off period.
This means road users may be able to cancel an agreement within days of signing up to a policy if they find a better deal elsewhere.
The survey revealed that 19 percent of road users did not know whether their firm offered a total loss courtesy car.
Firms that do offer this service will offer drivers a temporary road car to use while their damaged vehicle is being repaired.
Cuvva revealed this was one way in which drivers could save on their policies as the nation moves into recession
A total of 19 percent of drives were not sure whether personal effects insurance was included.
This provides coverage for valuables which are worn or carried by the policyholder at the time of an incident.
It could see drivers receive payouts for any items which are locked inside a car or stolen by thieves.
A massive 17 percent of all drivers were also unsure whether their policy offered any payouts for car modifications.
This could be crucial with insurers likely to increase premiums for any extra car upgrades which are considered to make your car a higher target for crime or increase its value.
Policies can also be invalidated if road users update their vehicle and fail to inform the insurer of the changes.