Consumers urged to check car insurance policies carefully
Personal insurance
25th March 2010
Drivers should ensure they have checked through car insurance policies to ensure they contain the features they feel are most important.
This is the finding of Defaqto, which carried out research into the market and found around eight per cent of products do not offer motorists car replacement cover, while 82 per cent apply a cost of repair threshold of 60 per cent before providing replacement.
According to the financial research firm, not all comprehensive car insurance policies are alike and buyers can get so carried away with the excitement of purchasing a new vehicle they can neglect to take care when obtaining insurance for it.
However, Defaqto analyst Mike Powell warns: "If you're buying a brand new car then we'd say 'new car replacement' is an essential feature to look out for when buying your insurance."
In addition, some products make provision only to cover cars up to 12 months old, those below a certain mileage or vehicles with only one registered owner, excluding models that have been pre-registered by dealers or manufacturers.
Drivers seeking a UK insurance policy are also advised UK roads have been left more damaged and potholed by the recent snow and ice, increasing the risk of damage to cars.
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