How your car insurance could be costing you an extra £1,300 per year

Many drivers are facing annual price hikes on their car insurance, leading to them coughing up an additional £1,300 a year.

A recent study also found 53% of UK drivers don’t actually know what their insurance covers them for.

Many drivers describe car insurance as “complicated”, “daunting” and “time-consuming”.

Over a quarter of drivers admitted to sticking with the same insurance provider in 2020, despite annual price hikes averaging £72.

For some, annual car insurance rose as much as £1,300 in 2020.

The new research found “unclear terms and conditions” in car insurance policies mean more than half of UK drivers are unsure what they’re covered for, so many could be wasting millions of pounds on unfit-for-purpose policies.

The study, commissioned by flexible car insurance provider Cuvva, also found because of the complex and lengthy nature of these policy documents, almost two thirds – 63% – of drivers said they don’t read their policy documents in detail.

As more employees are expected to return to work this month following the easing of some restrictions put in place in the wake of the coronavirus pandemic, some drivers could find their policy agreements invalid if commuting is not included, should they opt to drive to work to avoid public transport.

Freddy Macnamara, founder of Cuvva, said: “It’s unfair to put the onus on consumers to decipher unnecessarily complicated offerings and policy documents, to figure out what they should or shouldn’t be covered for.

“Insurers are known to operate unfairly, combine this with their lack of transparency – it’s easy for drivers to opt for cover that’s not necessarily best suited towards their needs.”

And annual price hikes can lead many to many drivers forking out for a costly bill.

According to the study, car insurance was described as “complicated”, “daunting” and “time-consuming”, which could be why more than a quarter – 28% – of drivers…

Read more: How your car insurance could be costing you an extra £1,300 per year

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