Car insurers have started rewriting the English language. The dictionary definition of comprehensive is 'something that includes all or much'. But insurers have been gradually stripping out sections from their policies, leaving drivers with cover that is comprehensive in name only.
Features that were once part and parcel of a comprehensive car insurance package are now in most cases costly extras. Third party cover that allows the policyholder insurance when driving another vehicle is now a separate feature.
Analysis for Financial Mail conducted by the British Insurance Brokers' Association found alarming examples where comprehensive cover has been eroded. The 'comprehensive' policy sold by RAC does not allow a policyholder to drive any other car, while features such as a courtesy car and insurance overseas are optional extras.
Soaring insurance prices and an increase in premiums (8.2 % in the past 12 months to £488 a year on average) have forced insurers to reduce the amount of perks that are included in a fully comprehensive package to make the overall price more attractive.
The recent change in the way the comprehensive car insurance is constructed and priced has had an affect on the results when customers search insurance prices via price comparison sites on the Internet. When looking for cheap car cover, despite not including a range of features, car insurance companies are coming out on top of their field for price. This can be misleading, as consumers are unaware of just what they are paying for.
Many insurers have lowered the limits for loss of items from the car, for accidental damage to the windscreen or for personal accident cover. Tesco, for example, makes customers pay the first £75 of any windscreen claim and levies a £350 compulsory excess for drivers aged between 21 and 24. This all means that motorists who want to be sure they are fully covered need to check the insurance small print carefully.
It is important that consumers think carefully about the type of car insurance that they enter into. If it is unlikely that you would be able to afford a payout for an element that is not covered by a basic package, it may be worthwhile spending that little bit extra on a cover that includes some extras. Motorists can fight against rising rates. Good deals are still available, especially for those with a clean driving record and big no-claims discounts.
Speaking to a broker can also give a different perspective. Norwich Union, for example, has removed cover for driving other cars from the insurance it sells direct. But it retains this in policies issued through brokers.
It might also be a good idea to research companies aimed at specialised markets. Sheila's Wheels and Diamond are both insurance companies that are geared specifically towards the female driver. They both offer packages that would suit a female driver. Both offer handbag cover as added bonus (usually up to £300). Shelia's Wheels also claim to offer the customer "female friendly repairers". This may sound strange but these are thing that a female driver might want included, or added on to, a comprehensive car insurance package.
Ashton Berkhauer, head of insurance with comparison site uSwitch.com, says: "The number of people shopping around and not accepting their insurers' renewal has increased".
It seems that in the wake of the credit crunch consumers are making financial cutbacks wherever possible.
Ruth has several articles on insurance so read her articles before you compare car insurance |
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