Only 21% of car insurance policies provide legal cover for uninsured loss recovery as part of their standard terms and conditions.
An analysis of 223 comprehensive motor insurance policies by Defaqto, a financial research company, has found large differences in the amount of cover for uninsured losses.
Only a fifth of the policies examined provided uninsured loss recovery as a standard feature, 25% did not provide any cover at all and the remaining 51% provided this type of cover as a paid for optional extra.
Insurance companies such as Swiftcover do provide cover for losses resulting from uninsured drivers, however you should always check the policy to make sure that it fully meets your needs.
Uninsured losses include policy excess payments, damages for injury or medical fees resulting from an accident. These can often be claimed form the other party although a legal process may be required which could incur costly legal fees.
A policy providing legal cover for uninsured loss recovery would pay out under these circumstances so it is important for motorists to be aware of the level of cover provided by their car insurance policy, as Mike Powell, Insight Analyst for General Insurance at Defaqto explains:
“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.”
As a result of these findings, Defaqto recommends that motorists check their insurance policies to see if:
- The cover is 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
- The maximum sum assured: this typically varies from £50,000 to £100,000.