Do You Know What Your Car Insurance Covers?

Wed 8th Jul 2020

One in ten British motorists have no idea what their car insurance policy covers according to a new study by a leading financial website.

The research of 2,000 car owners by MoneyExpert.com revealed the extent of insurance policy ignorance by the driving public, with almost a third surveyed not even knowing what to do about their insurance if they were involved in an accident.

Worryingly, the fact that 9.3 per cent of drivers don’t know what is covered on their insurance, could lead to some not actually being fully covered. Bizarrely one in 20 drivers don’t actually know who their insurance policy is with, and one in five don’t know how much their insurance costs.

“Obviously, it’s important to know exactly what your car insurance actually covers,” said Jason Smith, CEO of MoneyExpert.com

“If you only have third-party insurance, for example, you could be left with a nasty surprise after an accident leaves your car needing expensive repairs.

“But there are other bits of small print people don’t pay enough attention to – like whether the car is used for commuting or social purposes, or where it’s parked overnight.

Insurance providers advise that you contact them any time you have an incident in your vehicle, even if you don't plan to make a claim.

“It's possible that this may increase your premiums slightly, but any underlying damage that you don't report could invalidate your policy if it factors into a future claim.

“Our results found many people find dealing with insurance companies quite laborious – but that shouldn’t stop people from making sure all their paperwork is in order.”