Uninsured Loss Recovery cover

Independent financial research company Defaqto has analysed 223 comprehensive motor insurance policies and found significant variations in comprehensive motor insurance policies for those looking to reclaim costs for uninsured losses.

21 % provide Uninsured Loss Recovery (ULR) cover as a standard feature
28% don't provide ULR cover at all
51% provide ULR as an optional extra

Mike Powell, Insight Analyst for General Insurance at Defaqto said: "Many motor insurance policies offer legal services at an optional extra premium to cover the motorist's legal costs to pursue a claim following an accident. It would also cover the provision of a legal helpline or legal assistance to recover any uninsured losses, such as a policy excess, medical fees or damages for injury after a motor accident."

Mr Powell continued: "It's not unusual to be offered a number of optional extras when you buy your car insurance. What is important is that consumers check that they have their required features within their policy as we all have different needs. For example we recently conducted a survey of 5,000 motorists1 and found that those aged 55 to 65 were most concerned about policy excesses being imposed following an accident."

Defaqto recommends two simple checks if this is an important feature within your motor insurance:

Check if you have the cover included as standard or if it is an optional paid extra. The average additional cost is £21.80 but can be as high as £35 a year

Check the maximum sum assured: this typically varies from £50,000 to £100,000.