Budget motor policies can lack cover for common claims

Some “budget-friendly” insurance policies would not leave motorists covered for common claims such as a cracked windscreen, Which? is warning.

Higher premiums will have forced many motorists to consider more wallet-friendly policies, often offered by firms in a bid to make their range of deals more competitive, the consumer group said.

Lower prices on more budget-friendly basic policies may place them higher up on comparison websites than more expensive comprehensive policies – but Which? is warning motorists to check the small print of policies after finding gaps which could leave motorists “high and dry” should they need to make a claim.

It looked at the cover in more than 60 policies offered by 28 insurers, including some basic products.

Which? found that some stripped-back policies did not have cover for glass damage, which the consumer group’s research indicated was a common claim drivers made. This could leave motorists at risk of facing a hefty bill for repairs, Which? said.

Rocio Concha, Which? director of policy and advocacy, said: “You can’t be on the road legally unless you have car insurance, but with premiums at eye-watering levels, many motorists are being pushed towards stripped-back policies.

“Concerningly, our research shows that some basic policies lack cover for common claims, meaning that a cracked windscreen could leave some drivers facing hefty repair bills they’d assumed the insurance would cover.”

The average price paid for motor insurance in the final quarter of 2023 was around a third, or £157 in cash terms, higher compared with a year earlier, according to figures from the Association of British Insurers (ABI).

Between October 1 and December 31 2023, the average price paid for private motor cover was £627, up from £470 during the same period a year earlier.

Last week, the ABI said it was exploring various ways to tackle the rising cost of motor cover.

This included the industry doing more on transparency around which vehicles were more costly to insure, to help people make more informed choices, and continuing to crack down on fraud.