motor insurance
4th April 2011: Mike Powell, Insight Analyst, General Insurance
The number of travel insurance policies available today is vast. In fact there are 800 annual and single trip policies which are now offered in the marketplace. Travelling with babies and children brings many challenges and rewards and there are some features you may wish to consider including should something go wrong en route or while you’re away.
Medical expenses - One of the main benefits of a travel insurance policy is the cover provided for medical expenses. Our research of annual and single trip policies shows that:
- 8% of annual trip and 13% of single trip travel policies provide less than £5 million for medical expenses
- 92% of annual trip and 87% of single trip travel policies provide £5 million or more for medical expenses
£5 million worth of expenses may be adequate for most countries but t It may be therefore, advisable for mums who are travelling to the USA with their new born baby to consider opting for a higher medical expenses limit.
Baggage cover - The cover provided for your ‘baggage’ is worth bearing in mind given the amount of extra items needed when taking a new born baby abroad. The cover varies enormously so it’s worth checking how much the items you’re taking with you add up to and so what amount of cover you’ll need.
Our research shows that:
- 79% of annual trip and 75% of single trip travel insurance policies provide £1,500 or more in total for each insured person for their baggage.
- 14% of annual trip and 19% of single trip travel insurance policies provide less than £1,500 in total for each insured person for their baggage.
- 7% of annual trip and 6% of single trip travel insurance policies do not provide any cover for ‘baggage’.
A word of caution, remember to check the policy wording for specific limits for each single item, as these can typically range from £50 to £750. Also remember to check not only the item limit but also the definition of ‘valuables’, as these vary between insurance providers.
Baggage delay - If your baggage is lost or delayed during transit, you will need to buy emergency items for not only the baby but for yourself. These costs are usually covered by a travel insurance policy, but the cover provided varies between insurance providers.
Our research shows that:
- 55% of annual trip and 48% of single trip travel insurance policies provide £150 or more for each insured person towards the costs of emergency purchases
- 10% of annual trip and 13% of single trip travel insurance policies do not provide any cover for emergency purchases
- 34% of annual trip and 39% of single trip travel insurance policies provide less than £150 for each insured person towards the costs of emergency purchases
Finally as your family grows, your needs will change so you may wish to think about whether an annual policy is suitable or if a single trip policy may be more effective. Many current accounts now have travel insurance included as one of the benefits so remember to check with your bank what the cover is to ensure you're not doubling up on cover.
4th April 2011: Mike Powell, Insight Analyst, General Insurance
The new arrival of your little one means it’s a good time to review your car insurance policy. There are many features you may wish to now take into consideration which would not necessarily have been important prior to being a new mum.
There are many ways you can buy car insurance nowadays but bear in mind that the initial quotation you receive may not include some of the features you’ll need as a new mum.
Child car seat cover – It’s illegal to travel with an infant without securing them into a car seat and the costs of replacing a child car seat can run into hundreds of pounds so it’s important to have some protection under your car insurance. Our research shows that the type and level of cover provided for the replacement of a child car seat following an accident, fire or theft varies widely.
- 44% of policies do not provide any cover for the replacement of a child car seat
- 20% of policies provide £100 per seat toward replacement costs
- 27% of policies provide full replacement costs even if the car seat was not damaged
Courtesy Car - Being without a car could cause major disruptions and problems for day to day life. If your own car was damaged in an accident and needed to be repaired, how would you cope with getting to the baby clinic or hospital for regular checkups or simply visiting friends or family?
- 97% of comprehensive car insurance policies include cover for a courtesy car as standard or as an optional benefit that you can include once your baby is born. There may be an additional charge to do this so it’s worth checking with your insurer.
One thing to examine more closely is the type of courtesy car provided. Typically, most courtesy cars that are available are small hatchbacks so if you think you’ll need a larger vehicle for practical reasons or you simply want to drive a car that is more comfortable, you need to check whether your policy provides the option to enhance the courtesy car. Our research shows that:
- 79% of comprehensive car insurance policies do not provide an enhanced courtesy car option.
- 17% of comprehensive policies provide an optional extension of cover to enhance the courtesy car, subject to the payment of an additional premium.
- 4% of policies provide an enhanced courtesy car as standard.
Accident transport - One of the most important areas of a comprehensive car insurance policy for new mothers to consider is what help and assistance they would receive if their car was involved in an accident. For example, if the car was not driveable following an accident, how would you and your baby get home or to a safe place?
A number of policies include cover for any costs that are incurred for overnight hotel accommodation or public transport fares but these would still need to be paid for upfront. There are however, a number of policies that also provide a transportation service which will take the policyholder and their passengers away from the scene of the accident to a safe place, to their intended destination or back home.
Finally, as your baby grows, it's a good idea to check your policy details regularly to make sure you're getting the most out of your policy and are insured for what you need. Our Star Ratings can help you see at a glance the level of cover provided. In the main, new mums should think about 4 or 5 Star rated policies as these provide a more comprhensive level of cover and features than 1 or 2 Star rated ones.
08 February 2012
As British springtime draws closer and the long winter nights get shorter, many people across the UK will be looking forward to a caravan holiday.
If you are considering buying a new caravan or going on a caravan holiday, it is important you ensure that you have the right level of cover on your caravan insurance policy for your circumstances.
Why do I need caravan insurance?
Choosing a caravan insurance policy can be very tricky as there are a number of different features to consider, as well as a huge variation in the level of cover provided.
However, given the costs involved in purchasing and maintaining a touring caravan, it is important you ensure that you have appropriate insurance in place. Here are a couple of features you may wish to consider when deciding:
New Caravan replacement
Our data shows that 80% of insurance policies provide a new caravan replacement as standard, which means that if your caravan is lost or stolen it will be replaced with a new caravan of the same make, model and specification as your original caravan.
This is provided your model and spec is still available in the UK. It’s also worth noting that the maximum length of time your new caravan is protected for can vary widely, ranging between 6 and 240 months.
Awning cover
Another feature to review on your caravan insurance policy is whether you have cover for your awning.
Our data shows that 76% of policies will cover your awning as standard, while another 15% offer this feature as an optional extra.
Of these caravan insurance products, 34% provide awning cover ranging between £500 and £2,500, so you may wish to not only check that your awning is insured, but that the full replacement cost is covered.
These two features are worth reviewing when deciding on the level of cover needed from your caravan insurance policy.
If you are looking forward to going on a caravan holiday in the near future, it is important that your insurance policy is up to scratch, considering the amount of money you will have spent buying and maintaining your touring caravan.
You should focus on pinpointing the caravan insurance features most relevant to you, rather than choosing cover solely on the price. Defaqto Star Ratings can help you understand the differences in the level of cover provided by caravan insurance policies – take a look at our Star Ratings Centre to find out more.
07 February 2012
The winter weather has been very changeable thus far and the dark nights are still with us for a few more months, so ensuring your car breakdown cover is up to scratch is important.
Drivers are constantly warned to plan ahead with any journey and to leave plenty of time to get to their destination in winter, but one area often overlooked is car breakdown cover.
This can be a vital service if you are stranded by the side of the road in need of help during the winter months.
Car breakdown cover offers a range of protection
As there is a variety of coverage that is offered by car breakdown cover, it is important to pick one that best suits your needs.
The first decision that you will need to make is whether you want the policy to be attached to a particular vehicle or to you.
The main difference is that rather than having one policy for an individual car, breakdown cover is for you rather than an individual vehicle will cover any car you travel in as the driver or passenger.
After you decide on the kind of car breakdown cover you want, next important decision is the level of cover that you desire.
Roadside cover is the most basic option available and is offered by all car breakdown policies. This means that a patrol unit is sent to you to try and repair your vehicle at the roadside. If that is not possible then they will tow your car to the nearest garage.
The option of adding recovery to your car breakdown cover is provided by 73% of policies, and they will ensure that you are transported to your destination if your vehicle can’t be fixed at the side of the road.
Another option you may wish to consider is home breakdown cover, which is offered by 60% of car breakdown cover policies. This can be useful if your car fails to start in the morning. A patrol unit will come and try and fix the problem or tow your car to the nearest garage and see you get to your chosen destination.
Onward travel consists of the previous three levels of cover but with the added benefit that they will pay for any accommodation or car hire costs incurred as a result of breakdown.
European coverage is also available to add to car breakdown cover, to help solve your breakdown issues abroad. It can be handy in a location where you may not speak the local language or the cost of repairs may be costly due to your car being rare in that country.
It is important to consider car breakdown cover when preparing your car to tackle winter or the dark nights and hopefully the features mentioned will help you choose the right car breakdown coverage.
Why not also use our Star Ratings tool to see where your car breakdown policy sits in the market and compare it to all others available?
07 February 2012
Many British motorists are not fully aware of the level of coverage they have on their comprehensive car insurance policy, according to MoneySupermarket.com.
Their research suggests that many motorists simply concentrate on shopping around for the best deal, rather than considering what cover they need.
It is important to be aware of the level of protection your comprehensive car insurance policy provides as you may need more, or less, cover than you’re currently provided with. It also pays to check each policy carefully, to understand the features that are included by your insurer.
Comprehensive car insurance coverage can vary
Looking at individual features on a comprehensive car insurance policy is an important process to go through every time you renew your cover. The level of coverage provided by comprehensive car insurance policies can vary considerably, which can be quite confusing.
Ensuring you have access to a courtesy car if your car is involved in an accident and needs to be repaired may be an important feature if you rely upon your car to make essential journeys
Our data shows that 92% of policies provide a courtesy car as standard, while 5% offer it as an optional extra, which will mean paying an additional cost.
You can further narrow down the kind of courtesy car offered by your insurer, which is easier to do if you understand the features and benefits of your comprehensive car insurance policy.
Some comprehensive car insurance policies specify what kind of courtesy car you are entitled to. Our data shows that 54% provide a small hatchback, similar to a Ford Ka or a Vauxhall Corsa, while only a few policies offer a medium sized hatchback or larger.
Depending on your situation, a small hatchback car may not be suitable for your needs. If you are a parent and need to have room for car seats and boot space for a pushchair then a small hatchback probably won’t be adequate for your needs.
However, if you just needed to run around town or commute to and from work then a small hatchback is likely to be sufficient until your car is fixed.
If you do choose a policy with a small courtesy car and you require a bigger vehicle, then some policies provide an enhanced courtesy car as an optional extra. Do bear in mind though that this will involve an added cost to your premium.
Ensuring you select a policy with the right level of cover for you is vital, because choosing a policy that doesn’t have sufficient coverage could result in a nasty surprise if you ever need to make a claim.
Choose your policy carefully by picking features that best meet your needs and circumstances. Read our guide to car insurance to find out about more features to review when looking for cover, or alternatively use our Star Ratings tool to find the Star Rating of your product and compare it against other comprehensive car insurance policies on the market.
02 February 2012
Owning multiple cars can be useful in terms of convenience for you and your family, as there are no restrictions on when and where any of you can travel.
However, owning multiple cars can have its disadvantages too, such as having to organise and pay for multiple MOTs, road taxes and of course, car insurance policies.
As a result, some car insurers have taken steps to help soften the pain of organising multiple car insurance policies by introducing multicar policy schemes.
The main advantage of a multicar policy is very simple - one insurer will insure all your cars together and you will receive a discount for doing so without sacrificing the no claims bonus of any driver on the policy.
These policies effectively allow each person insured to earn their own no claims bonus individually. If someone was to make a claim, it only affects the person involved.
Multicar insurance –cover levels provided
Analysis of every multicar insurance policy on the market shows that only 28% of comprehensive car insurance policies have a multicar scheme available.
However, it’s important to ensure that any multicar policy you choose offers the level of cover and features and benefits which you need in addition to the unique benefits identified above.
A majority (88%) of multicar insurance policies will provide a courtesy car as standard, while the other 12% offer one as an optional extra.
Another feature you may consider when taking out a comprehensive car insurance policy is whether your insurer provides transportation from the scene of a road accident for you and your passengers back to your home or your final destination.
This feature is useful for every person on your multicar policy to have, and our data shows that 70% of multicar insurance policies will provide transport from the scene of an accident.
Legal cover and advice is often overlooked on most people’s car insurance policies.
Access to a legal cover helpline may not seem like much of a benefit, but it does mean the insurers’ legal team will advise on the best action to take if you need any legal advice on what to do or where you stand
Our data shows that only 37% provide this legal helpline as standard, while 55% offer this feature as an optional extra.
Legal costs is another feature to consider, as your insurer would pay your legal costs if you were in court charged for an offence against the Road Traffic Act or for damage caused to a third party’s property.
Our data shows that 48% of multicar insurance policies provide legal costs up to the amount you agree with your insurer, while the rest give a set amount of £5,000,000 to cover your legal fees.
These are just a few of the features that motorists expect to see on their car insurance policy and as highlighted, many multicar insurance policies provide the same level of coverage as standard policies, despite the discount and convenience you receive.
If you are still considering your options, why not read our guide to car insurance? Alternatively, use our Star Ratings tool to see the level of cover and benefits provided by your current policy and compare it to others on the market.
02 February 2012
22% of drivers are worried about driving at night and being in an accident, according to research from Santander.
With an average of just 8 hours of sunlight a day and temperatures rarely exceeding 8 degrees centigrade during the first few months of the year, conditions on the roads can often be treacherous.
However, if you are unlucky enough to be injured in a car crash then there are a few features that can be found on a car insurance policy that could provide financial compensation if you are unfortunate enough to be seriously injured.
Injuries suffered in car crashes are covered under car insurance policies
Your insurer will pay out if you are injured in a serious car accident while in any private vehicle, including if you were to lose a limb or go blind. If you were to be killed in a fatal car crash, the money would go to your next of kin.
Our data shows that 81% of car insurance policies provide this feature as standard, while 10% offer cover as an optional extra.
If you were to be disabled from an injury sustained from a car crash then you could be entitled to a sum of money, depending on the level of cover you have. However, it is important to remember the amount can vary from policy to policy.
Our data shows that 43% of car insurance policies will pay out up to £5,000, while 10% will only offer £2,000 compensation.
If you are worried about driving at night during the winter months and potentially being involved in an accident, then your car insurance policy can offer a range of other features to give you peace of mind.
19 January 2012
BMW has become the first motorbike manufacturer to respond to the ‘Mark our Bikes’ campaign by including Datatag security markings on all their new models.
The campaign, started by Motorcycle News magazine, is aimed at lowering the number of stolen motorbikes that are unrecoverable.
The Datatag system can be installed on all motorbikes and is simply a unique code that is etched onto parts of the bike, but is invisible to human eye and only detectable by UV light.
This security feature is highly recommended by the police as it can make it easier to locate the owner of a stolen bike.
Datatag security markings add an extra level of security for your motorbike, and it can also mean you could save some money on your motorbike insurance policy as your bike will have additional security features added to it.
Our data shows that 73% of comprehensive motorbike insurance policies offer discount for adding Datatag security markings to your bike. The amount of discount you will receive for this security feature can vary from one policy to another.
Motorcycle insurance can give protection from bike theft
Motorbike insurance can play its own part in protecting your bike from theft and we have highlighted a couple of features that may be of benefit to you when reviewing your policy.
If you have just bought a brand new motorbike, you will be looking to ensure you have the right level of cover to protect your pride and joy from theft.
Our data shows that 46% of motorbike insurance policies provide a ‘new bike replacement’, which means your insurer will replace your motorbike with one of the same make, model and specification if it is stolen and is not recovered, provided it is still available in the UK.
However, it is important to note this feature only applies for the first 6 months of ownership on a brand new bike.
Another feature you may want to consider is protection from the theft of the keys for your motorbike. 31% of motorbike insurance policies cover the cost of replacing the keys and locks as well as ensuring that the immobiliser is also reprogrammed to work with your new key.
It is important to check carefully to see if this feature is standard or not, while the amount of cover provided can vary from policy to policy.
Our data shows that 63% of those policies that do provide cover for loss or theft of keys provide up to £1,500 to cover the cost of replacing your locks, while 25% only offer between £300 and £400.
These couple of features can give you peace of mind in the event your bike is stolen. Datatag security markings, immobilisers and alarms provide security for your bike, while motorbike insurance can give you the peace of mind that you are covered, if your bike is stolen and not recovered.
If you are considering what options you have available for protecting your motorbike, then why not use our Star Ratings tool to compare all the comprehensive motorbike insurance policies available on the market?
17 January 2012
People in Yorkshire, the East Midlands and London fear car crime more than those in other parts of the UK, despite the percentage of car thefts dropping, according to the Admiral Survey of British Motorists.
The survey shows that almost double the amount of people in Yorkshire are frequently concerned about their vehicle being targeted for car crime, compared against the national average, which stands at 9%.
Admiral’s findings also highlight the vehicles most likely to be stolen. These are the BMW X6 and the hi-performance Audi RS6, while the Nissan Figaro and Citroen C8 are most frequently broken into.
If you do fear that your vehicle could be a target for car crime, ensuring you have the right level of cover on your motor insurance policy will be essential for giving you some peace of mind.
Protecting yourself against the cost of car crime
If you are considering switching car insurance providers, we have highlighted some features that can help if your car is stolen or broken into.
If you are an owner of a new car it is important to ensure your policy will provide you with a replacement vehicle if your car is stolen and not recovered. Our data shows that 95% of motor insurance policies will replace your stolen car with the same make, model and specification, providing it is still available in the UK.
Another area of your policy worth considering is protection for your personal belongings. Our data shows that 93% of motor insurance policies provide this feature as standard, while 4% of policies offer this feature as an optional extra.
Insurers set a maximum limit for the amount of cover they provide for your personal possessions in your car, so choose carefully as these can vary from policy to policy. However, in order to make a valid claim, you must keep your items hidden and locked away in either the glove box or in the car boot.
Our data shows that 42% of policies provide only £100 to cover your personal belongings, while 23% offer more than £250.
Another feature that could be of use if you are a victim of car crime, is the cover for the theft of your car keys, which means your insurer will pay out for new keys and locks for your car if they were stolen. This includes programming a new key fob to operate the central locking system on your car.
Our data shows that 84% of motor insurance policies provide this feature as standard, while 9% offer this feature as an optional extra.
Out of those policies, 30% provide up to £500 to have the locks and keys replaced, while 10% of policies provide between £200 and £250. It is important to choose the level of cover you have for loss of your car keys carefully, as the cost of replacing your door locks and keys varies from manufacturer to manufacturer.
We have highlighted a couple of features that are readily available on car insurance policies that could allay your fears of you being a victim of car crime.
It may also be worth reading our guide to car insurance, which suggests some other features that may be beneficial for you. Alternatively, why not find the Star rating of your current car insurance policy and compare it against others on the market to see how it stacks up.
06 January 2012
More than 1.6 million motorists in the UK are at risk of their driving licence expiring and that figure is expected to affect 13 million drivers over the next 5 years, according to Sainsbury’s Finance.
Their research suggests that more than 40% of motorists do not know the true consequences of not updating their driving licence, as the police can enforce an £1,000 on the spot fine for an expired driving licence.
This may seem a steep fine, but checking your driving licence is up to date could be the opportune moment to ensure the rest of your driving documents are too, including your motor insurance policy.
The penalty for having no car insurance on your vehicle could bring a disqualification, points on your driving licence or your car being impounded.
Reviewing your car insurance will keep you road legal
Having car insurance is important to keep yourself road legal, but it is also very important to keep your details up to date too, otherwise it may affect any claim that you need to make.
If you do need to make some administrative changes to your motor insurance policy, you may incur a small administration charge to adjust it when you inform your insurer about the change in your situation. Whether it is to simply change address, vehicle details or extending the level of cover you need.
This can be in addition to possible increases in the cost of cover arising from a house move, addition of a new driver to the policy or the replacement of the insured vehicle.
Our data shows that 69% of car insurance policies charge an administration fee ranging between £10 and £50.
Reviewing your car insurance cover
While you’re updating your details, it may be a good moment to also review your car insurance policy to ensure that you continue to have the right level of cover provided.
Medical expenses is a feature that can be of real benefit on your car insurance policy to you and your passengers, as your insurer will contribute towards the cost of your medical treatment if you need it, following an accident.
Our data shows that 91% of car insurance policies that provide cover include medical expenses as standard.
29% of those policies offering protection for medical expenses after a car crash will provide £100 per person travelling in your car to help pay the medical expenses, while 21% of policies provide up to £500 per person to cover hospital costs.
Another feature worth reviewing on your motor insurance policy is personal accident cover. Your insurer will cover you against injury or death that occurs in a serious or fatal car crash while in any private vehicle. The insurer will pay out if you lose a limb or go blind because of a road accident or killed in a fatal car crash.
Our data shows that 88% of car insurance policies provide this feature as standard, while 10% offer cover as an optional extra.
If you are one of the many people who needs to update their driving licence, it will also be a good opportunity to review your car insurance policy to ensure it is up to scratch. Read our guide to car insurance to find out about some other features worth reviewing or adding to your policy.
