Car insurers are quietly removing key cover for motorists in an attempt to offer what appear to be cheaper policies, while leaving motorists without critical protection.
Additions like windscreen cover, key cover, personal belongings cover and a courtesy car are no longer being provided in policies as standard, with insurers looking to offer cheaper deals.
Car insurance prices have rocketed in recent times, soaring by 43 per cent on average in the last 12 months alone, according to the Office for National Statistics.
Some motorists are now reporting that their bills are now more than double what they were paying the previous year.
Insurers have said inflation and the higher cost of repairs are why prices are increasing so rapidly.
August also saw drivers hit by one of the biggest monthly fuel price rises in nearly a quarter of a century, the RAC said. The price of petrol rose 6.68p a litre while diesel shot up by 8p.
In a bid to reduce prices and entice more customers, insurers are now introducing “basic” and “essential” policies that do not cover everything, removing aspects such as windscreen cover, the AA says.
As a result, it is now warning drivers to check their car insurance policy carefully before committing to make sure they’re not caught out if they need to make a claim.
A poll by the firm found that 86 per cent of drivers consider having windscreen cover “important” with three fifths saying it was “very important”.
As more technology is installed in cars, a front windscreen is more than just a sheet of glass. Heating elements, sensors and cameras means the average cost to replace a windscreen is £700.
What you can do to cut costs
Despite rising costs, there are ways people can cut costs on their car insurance.
The first thing to do is shop around. Although the loyalty penalty – where people were penalised for staying with the same provider – has now been banned by the Financial Conduct Authority, there are still savings to be made by switching insurer. Comparison websites will be able to tell you the best deals when you enter the information and help guide you through the switching process.
Paying annually will also cut costs as it is generally cheaper. It is also worth only paying for what you need. For example, not opting for unnecessary add-ons such as windscreen cover, that you are unlikely to need.
There are other more practical steps you can take which include limiting your mileage, as this is a lower risk for insurers, and improving the security of your vehicle, which could include installing devices such as alarms or locking wheel nuts.
One addition that can often save you considerable amounts is getting a telematics policy – also known as a black box policy – by having one installed. This helps the insurer base premiums on what you actually drive which means as long as you are a careful driver, you should be able to cut costs.
Renewing at a specific time could even have an impact on your bills. You can buy your insurance up to 29 days before the policy start date and lock in the price quoted on that day. Go Compare said its research shows its better to buy early, and the closer to the renewal day you get, the more you could end up paying. It said its customers saved over 44 per cent on average by buying their insurance 27 days before the renewal date when compared to renewing on the day.
Gus Park, managing director for AA Insurance Services, said: “With household budgets being squeezed there is a temptation to find cheaper alternatives, but when it comes to car insurance it could be a case of not knowing what you’re missing.”
Several comparison sites confirmed there were “essential” policies on their website which could be cheaper. Sara Newell, general manager of insurance at MoneySuperMarket, said: “The rising costs of repairing and replacing vehicles has had an impact on the cost of car insurance.
“We currently have 15 policies offering essential cover which may be more cost effective for customers depending on their circumstances and needs.”
Tom Banks, spokesperson for Go.Compare, added: “We have seen a slight increase in insurance policies which exclude features such as windscreen cover and key cover, as well as cover for audio equipment. Alongside this, we have also seen some insurers increasing compulsory excesses.
“There could be a number of reasons behind this – it’s been widely reported that insurance costs are rising, so it may be that insurers are providing options for those looking to keep their costs down by opting for a lower level of cover.”
Although cheap car insurance is welcome, cutting corners could mean a costlier bill in future.
Mr Park said: “Windscreen cover is commonly removed on ‘entry level’ insurance policies so it is worth checking what you are covered for.
“Claiming for windscreen damage is one of the most common reasons drivers use their policy. If it is not included, then drivers are likely to lose the saving they made when buying a ‘basics’ policy.”
