Majority of drivers comfortable with buying car insurance online
Eighty six per cent of consumers are comfortable with researching and buying motor insurance online without professional advice, according to a survey by Defaqto. However, this places a greater onus on people to understand and focus on policy features, rather than price alone, when comparing policies to ensure they arrange cover that meets their needs.
In particular, anyone looking to purchase a new car over the coming weeks should check the level of cover for new vehicles provided by their current motor insurance or any policy they are looking to arrange.
Analysis by Defaqto has found that although 95% of comprehensive car insurance policies would replace a new car if it were to be written off or stolen, the level of cover provided varies across the market:
The period within which this provision applies varies between policies, ranging from 12-24 months
The threshold of damage required for a new car to be replaced also differs across the market, with the cost of repair required for full replacement ranging from 50-70% of the car's list price
In addition, although 57% of policies offer new car replacement for vehicles imported from overseas, the remainder, a significant minority of policies, will not extend this cover to them.
Mike Powell, Defaqto's Insight Analyst for General Insurance, said: "Anyone lucky enough to be buying a new car should consider what cover their or a prospective insurance policy would provide if their car were to be stolen or written off. Although most comprehensive car insurance policies will fully replace a new car in these circumstances, the level of cover provided and criteria applied vary between policies. In addition, a small number of policies do not offer any cover for new car replacement at all and a significant minority will not insure new imported vehicles.
"To ensure they get the right type and level of cover for their new car, people need to focus first and foremost on pinpointing the features they need from an insurance policy and identifying the policies that provide that cover. Although important, price should not be the primary basis for comparison - after all, buying the cheapest cover available could end up being the most expensive option if it doesn't provide adequate cover for someone's new car. An additional factor is the volume of people that are now buying car insurance online. Although the internet gives people access to numerous quotes and quickly, it places more onus on individuals to take a feature-led approach to decision making rather than being led by price."