When arranging car insurance, a lot of motorists probably focus on how much their cover is going to cost with fewer drivers possibly not paying a huge amount of attention as to exactly what he or she is covered for. Based upon some research recently carried out on behalf of GoCompare that would certainly appear to be the case as far as some younger drivers are concerned.
In July 2019, Bilendi carried out a survey of 2,000 adults here in the UK on behalf of the above price comparison website into how aware young motorists were about certain insurance terms relating to motor insurance. The research provided some interesting statistics some of which we share below but full details can be found on the website of GoCompare.
For the insurance term ‘policy exclusion’ only 20% of young drivers 18 to 24 years of age understood the insurance term.
With regard to the insurance term “protected no claims” only 29% of drivers in the above age group understood the insurance term. This is concerning as this sort of policy option may prove of benefit to drivers who claim on their policy.
The insurance term “voluntary excess” was only understood by 31% of such motorists mentioned above. Again, this is worrying as some motorists would benefit from a lower premium if they agreed to pay a voluntary excess in addition to the compulsory excess.
The fact that only 33% of drivers in the above category understood the insurance term “social, domestic and pleasure” is of concern as it is important that when taking out motor insurance the correct usage category of cover is chosen i.e. if you use your car for business purposes then the aforementioned category of cover would be incorrect and could lead to the insurance company refusing to pay out in the event of a claim.
The term “legal assistance’ is only understood by 34% of such drivers, “compulsory excess” is understood by a mere 36% of young drivers in the previously mentioned age bracket, ”personal accident cover” by 40%, “comprehensive cover” by 42%, “third party fire and theft” by 44%, “courtesy car” by 45%, “driving other cars” by 45%, owner/registered keeper by 46%, “no claims bonus” by 46%, “windscreen cover” by 49% and “named driver” by 52%.
The survey also revealed that 20% of young drivers aged 18 to 24 were not aware that they would have to make some contribution towards the cost of a claim.
We are sure that you will agree, the above is concerning. Perhaps something could be incorporated into the process when selling a car insurance policy that provides motorists with a clearer understanding of certain popular motor insurance terms.