Motorists warned of the free courtesy car myth

Many motorists are unwittingly paying for courtesy cars marketed as free of charge by most insurance companies, a study by Tesco Car Insurance reveals today.

The insurer’s findings show that of two thousand drivers questioned, 71% believed that they were not paying for their courtesy car and a further 18% were unsure if they were being charged.

Tesco warned that the cost of courtesy cars is included in most insurers’ claims costs. These costs will then form the basis for calculating a motorist’s overall premium.

Simply looking at the marketing of five well-known insurers finds that all are misleading on how they describe the cost of courtesy cars.

Allan Burns, head of Tesco Car Insurance comments: "Many insurers cleverly position a courtesy car as a free service, but in reality someone has to pay for it and that someone is ultimately going to be the customer."

Motorists may also be unaware that most courtesy cars are not guaranteed and insurers are not contractually obliged to provide one to their customers. Most rely on small print to outline the many restrictions relating to their provision including ‘if a vehicle is available’ and ‘in non-fault claims only’.

A separate study by Tesco shows that over a quarter (28.8%) of motorists who had expected a courtesy car when their own was off the road did not receive one for some or all of the expected time.

Some unlucky motorists aren't even eligible to ask for a courtesy car, as companies frequently only allow them after an accident, not if the car is written off. These drivers either have to go without or have had to pay an additional cost.

Tesco Car Insurance was one of the first companies to offer its customers an optional Guaranteed Temporary Replacement Car. For just £15.75 a year this service puts choice back into their hands, allows them to see the true cost and provides a guarantee for both quality and availability. To date, eight out of ten customers have chosen the service.

Burns concludes: "Many motorists are given no choice but to pay for a courtesy car service that offers little or no guarantees. Tesco believe our customers should have both a choice and the knowledge that the service will deliver when they need it."