Is car insurance bound to baffle?

A new study for swiftcover.com has revealed that we are nation confused by car insurance – and it could prove very bad for our finances. The survey found that 42% of Brits struggle to understand the terms used in their car policy, leaving them uncertain over what is covered, and 18% believe policies are purposely designed to confuse them.

The research shows that 23% have no idea what “voluntary excess” means, despite the fact that many people increase their voluntary excess as a way to reduce the cost of insurance premiums. However, voluntary excess is actually the amount you must pay towards a claim on top of your compulsory excess. The amount of voluntary excess is selected by the consumer when they take out their policy, and a higher voluntary excess usually means a lower premium.

In addition, 17% of drivers wrongly believe that “fully comprehensive” means they can drive any car, and 9% think fully comprehensive means anyone can drive their car. In fact, fully comprehensive insurance actually means that, when driving your own car, you are covered for any damage caused to your car, other cars damaged by your vehicle, and injury to yourself or others.

Tina Shortle, marketing director of swiftcover.com, said:

“Some drivers struggle with the terms used in their insurance, but it’s vital that they read and understand their insurance policies so they know exactly what they are covered for.”

“Car insurance is very complex, so this means that the wording used in policy terms and conditions can be fairly complicated. Because we are dedicated to making people’s lives easier and hassle-free, we are launching the swiftcover.com Jargonbuster to explain in simple language what these terms mean.”

swiftcover.com’s Jargonbuster is available at www.swiftrelief.co.uk/jargonbuster.aspx.