Andy Leadbetter, Head of Motor and Home Insurance
Over the next few months thousands of motorists will take their cars over to the Continent, yet many won't realise they don't have the same level of insurance cover they enjoy in this country. And it's not only when they're abroad that motorists are being caught out.
A number of insurers have changed the terms and conditions of their motor insurance policies meaning that fully comprehensive cover isn't as comprehensive as it used to be. When searching for car insurance you need to compare more than just price. As well as understanding what you are covered for, it is important to know what is excluded. And we've just made that task easier for you.
Moneysupermarket.com has launched a new tool on its motor channel. Once you have filled in your details and obtained quotes, you can choose five products from the results table and compare what each policy does and doesn't include. Click here to compare quotes from more than 60 car insurance providers.
Taking your car abroad
Did you know that many insurers will automatically downgrade your insurance if you take your car over to Europe? If you didn't, don't worry, you're not alone. Recent research from moneysupermarket.com found that 39% of drivers weren't aware of this.
Regulations state that insurers must provide the minimum level of third party cover in all EU countries. but third-party cover means that if there is any damage to your own car, you will be left to foot the bill. Anyone with a holiday home in Europe or who regularly drives in the Continent should therefore look for an insurer that automatically provides the same level of cover throughout the EU.
Five of the UK's 10 leading insurers automatically reduce cover when policyholders travel to Europe. Drivers with motor insurance from Barclays, Direct Line, Churchill and esure are most at risk; these policies reduce your existing cover to third party only in Europe.
However, not all insurers downgrade policies in this way. Endsleigh, Marks & Spencer, The Post Office and The AA are among those that will retain your existing level of cover if you take your car abroad. However, the length of time you are insured for is capped, usually at 60 or 90 days, so if you will be away for longer than that you will need extended cover.
Drivers really need to be alert to this trick of the trade. Some motorists may be happy only having third party cover while abroad, however those who aren't should look to pay to upgrade their cover. A crash is a horrible experience, but being abroad, not speaking the local dialect, and finding yourself uninsured, could turn your idyllic break into a holiday from hell.
As well as driving in Europe, fully comprehensive insurance in the UK may not be all it seems either.
How insurers are reducing cover levels
Recent reports suggest that 75 per cent of all car insurance sold is fully comprehensive; however, an increasing number of insurers are excluding elements that used to be included in comprehensive motor insurance such as windscreen damage, third party cover when driving another car and courtesy cars.
Many people assume that if they have fully comprehensive insurance on their own car, it will include third party cover if they drive other vehicles. But this isn't necessarily the case. The RAC for example, doesn't offer third party protection on other vehicles as part of its fully comprehensive policy. And even, if your insurer does give this extra protection, there are often restrictions: you must have the owner's permission to use the vehicle for example, and it must be a privately-owned car. Certain drivers don't qualify for this extra cover. These include the under 25s; certain occupations, such as motor mechanics, drivers of high value/power vehicles, and drivers with poor claims or convictions record. In these instances it's best to add the temporary driver on as a named driver to the owner's policy.
We're also seeing some insurers dilute the cover they give for windscreen damage. In the past repair to a cracked windscreen has tended to be included as standard with fully comprehensive insurance and there has been no excess to pay for motorists making a claim on this. However, we are now seeing excesses creeping in. Tesco for example, charges a £75 excess on windscreen claims.
Often, motorists are also paying extra for things such as courtesy cars and legal protection. Including this type of cover as optional extras is a way for insurers to keep the basic premium low. In many cases, once you factor in all the add-ons you need, quotes can end up not being as competitive as they initially appeared, underlining once again, the need to look beyond the headline price.
Have your say: Have you found out the hard away that your car insurance didn't offer the level of cover you thought it did? Or maybe you've got some advice for those needing insurance? Share your experiences and discuss policies and providers in our forum.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
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