Mon, Jul 23, 2018 12:00 AM
The UK’s young drivers are signing up for car insurance policies without actually understanding what they mean according to a survey published this month.
The survey - conducted by YouGov on behalf of Swinton Group - discovered that a quarter of 18 to 24 year olds do not know what a no claims bonus is, while almost half would not know what to do if they were hit by an uninsured driver.
"Our research has uncovered a worrying lack of confidence in car insurance cover, especially amongst younger drivers,” said Mike McGrail, Senior Product Manager at Swinton Group.
"Although many may think this is a less important element of car ownership, the simplest misunderstanding can leave drivers at risk should they need to make a claim.
"We know there's a long road ahead of us to get drivers to feel confident they understand the ins and outs of their car insurance policy. As an industry we need to do more."
The survey makes for troubling reading for the industry, 17 per cent of young people are unaware that a driver needs insurance when learning to driving, while one in five believes that they automatically have full-comprehensive cover when driving other people’s cars.
Over 40 per cent wrongly assume they do not need to inform their insurance provider if they paid for any damage to their cars themselves.
However, it’s not just young drivers who need to do their homework when it comes to insurance policies. Twelve per cent of older drivers are not confident as to what their policy includes, and a quarter believe they do not need to tell their insurer if they arrange to pay for car damage.