Auto insurers are quietly abandoning critical coverage for motorists in order to seemingly offer cheaper policies, leaving motorists without critical protection.
Additional services such as windshield protection, key protection, protection of personal belongings and a replacement car are no longer included in the standard policy package, insurers are looking for more favorable conditions.
According to the Office for National Statistics, car insurance prices have risen sharply recently, with an average increase of 43 percent in the last twelve months alone.
Some drivers are now reporting that their bills are now more than double what they were last year.
Insurers say inflation and higher repair costs are behind the rapid rise in prices.
Motorists were also hit in August by one of the biggest monthly fuel price increases in almost a quarter of a century, according to the RAC. The price of petrol increased by 6.68 cents per liter and the price of diesel increased by 8 cents.
To lower prices and attract more customers, insurers are now introducing “basic” and “essential” policies, which don’t cover everything and exclude items such as windscreen cover, the AA says.
For this reason, motorists are now advised to check their car insurance carefully before taking out insurance to ensure they don’t get caught if they need to make a claim.
The company’s survey found that 86 percent of drivers believe windshield coverage is “important” and three-fifths believe it is “very important.”
As cars are equipped with more and more technology, a windshield is more than just window glass. Thanks to heating elements, sensors and cameras, the average cost of replacing a windshield is 700 euros.
What can you do to save costs?
Despite rising costs, there are ways to save on car insurance.
The first thing you should do is look around. Although the loyalty penalty, which punished people for staying with the same provider, is now banned by the Financial Conduct Authority, there are still savings to be made by switching insurers. Comparison websites can tell you the best deals after you enter your information and help you through the switching process.
Paying annually also saves costs as it is usually cheaper. It’s also worth paying only for what you need. For example, don’t choose unnecessary add-ons, such as a windshield cover, that you probably won’t need.
There are other practical measures you can take, such as: Examples include limiting mileage as it means less risk for insurers, and improving the safety of your car, for example by installing devices such as alarms or wheel nut locks.
An optional add-on that can often save you a significant amount of money is telematics insurance, also known as black box insurance, through installation. This helps the insurer match premiums to actual driver behavior. Therefore, if you are a careful driver, you can save money.
Renewing at some point may even affect your bills. You can take out insurance no later than 29 days before the insurance starts and set the price for that day. Go Compare’s research shows it’s better to buy early, and the closer you get to your renewal date, the more you could pay. The company says its customers saved an average of more than 44 percent when purchasing insurance 27 days before their renewal date compared to renewing on the same day.
Gus Park, managing director of AA Insurance Services, said: “With household budgets under pressure, it’s tempting to look for cheaper alternatives, but when it comes to car insurance, you may not know what you’re missing out on.”
Several comparison sites have confirmed that their sites have “must have” policies that could be cheaper. Sarah Newell, managing director of insurance at MoneySuperMarket, said: “The rising cost of vehicle repairs and replacements has impacted the cost of car insurance.
“We currently have 15 basic cover policies that can be more cost effective for customers depending on their situation and needs.”
Go.Compare spokesman Tom Banks added: “We are seeing a slight increase in insurance policies, with the exception of items such as windshields, key covers and audio equipment cover.”
“There could be a number of reasons for this: insurance costs are widely reported to be rising, so perhaps insurers are offering options for people who want to reduce their costs by choosing lower levels of cover.”
While cheap car insurance is welcome, cutting corners can lead to higher bills in the future.
Mr Park said: “Entry-level insurance policies usually don’t include windscreen protection, so it’s worth checking what you’re covered for.
“Window damage claims are one of the most common reasons drivers make a claim on their policy. If this is not taken into account, motorists are likely to lose the savings achieved by purchasing a ‘basic’ policy.”
Source: I News
I’m Jeffery Bryant, and I’m an experienced author specializing in automobile news. For the past several years, I have been working as a writer in a well-known news website. During this time, I’ve written hundreds of articles covering automotive trends and developments both nationally and internationally.