Which? warns of insurance "loopholes" leaving drivers with unexpected bills

New research from Which? shows what drivers should look out for in their insurance

Author: Alex UsherPublished 23rd Feb 2022

Motorists risk being left with an unexpected and hefty bill if they do not check their insurance small print for "loopholes", Which? has warned.

The consumer group, which analysed 49 policies from insurers, said it had found some gaps in cover for personal belongings and "surprising" exclusions for courtesy cars.

What "loopholes" should drivers check their insurance for?

Personal belonging cover

Nearly all policies Which? looked at contain some personal belongings cover - which helps people repair or replace items damaged in or stolen from a car. However, they found that not all belongings are included, with only a handful protecting cash, documents and credit cards. They found that 40% of policies with personal possessions cover exclude mobile phones.

Clamping and cloned licence plates

Which? also found that only about a quarter (24%) of policies will pay for someone to recover illegal clamping or towing fees, while just 31% will help deal with legal costs related to a car's licence plate being cloned.

Wrong fuel in the tank

Seven in 10 policies offer help in the event that someone fills their petrol tank with the wrong fuel, but only one in five will assist with both draining the tank and repairing the engine. Just over 50% of policies do one or the other, Which? found.

Stolen and written off vehicles

Almost all policies have some provision for courtesy car cover as standard - but only a fifth offer a temporary replacement vehicle if someone's vehicle is stolen, and just a fifth do so if it is written off. Most policies do have options to upgrade this feature to make it more comprehensive, but drivers should not consider full cover a given, Which? cautioned.

Cover for driving other cars

Which? also found the "rarest" feature it looked at is guaranteed cover for driving other cars. In more than a third (37%) of policies, it applies only in emergencies, it found.

Jenny Ross, Which? Money editor, said: "Our research shows that motorists risk facing hefty bills when things go wrong as a large number of policies don't cover incidents or possessions you might expect. With the cost of living biting, this means car problems could be disastrous for those on low incomes, or with limited savings.

"We would urge drivers to read the small print. If you're comparing two similarly priced policies, the bills you can rack up by falling foul of car insurance loopholes could dwarf the extra amount you would pay for the more expensive cover.

"Anyone who's unhappy with how their insurer has handled a claim should always shop around when it's time to renew. You could save hundreds of pounds by switching insurers, while getting the right cover to suit your needs."

A spokesman for the Association of British Insurers (ABI) said: "Every day motor insurers pay £22 million in claims to private motor insurance customers, with 99% of all claims paid.

"Insurers remain committed to ensuring value-for-money cover and want drivers to understand exactly what they are covered for. We urge motorists to check the scope of cover provided and speak to their motor insurer if unclear."

Hear all the latest news from the North East of Scotland on Northsound 1. Listen on FM, via our Rayo app, DAB, or smart speaker.