Fully comprehensive car insurance may not cover you for every eventuality a new report is claiming.
Features that used to be standard in virtually all comprehensive insurance, such as third-party liability cover for driving any vehicle, or an extension of cover for short trips overseas, are disappearing.
Exclusive analysis for Financial Mail conducted by the British Insurance Brokers' Association found examples where comprehensive cover has been eroded.
Hayley Parsons, chief executive of comparison site gocompare.
com, says: 'The importance of comparison sites has meant it is key for insurers to get near the top of the rankings on price and they can do that by slimming down the cover.
' Graeme Trudgill, technical services manager at Biba, says: 'All the advertising is about price.
It's no longer focused on providing the right financial protection for the motorist.
'Even if an element of cover remains, the sum insured may be reduced.
Many insurers have lowered the limits for loss of items from the car, for accidental damage to the windscreen or for personal accident cover.
'And in some cases, such as an accident involving a younger driver, the compulsory excess charged has increased.
' Trudgill says: 'Think about what features matter to you.
Also, how much could you afford to pay in the event of a claim.
You may find that paying slightly more than the cheapest premium actually gives you a better value option.
' Despite this cutback insurance premiums are still on the rise.
Business information group Datmonitor have confirmed that insurance companies are losing money and as a result will raise their premiums to return to profit.
Figures showing there has been a 20% increase in the past 12 months.
Analysis by management consultant Deloitte has echoed these findings by revealing that premiums have risen by 8.
2 per cent in the past 12 months to £488 a year on average.
Catherine Barton (left), insurance partner at Deloitte, says: 'This is the biggest annual rise in premiums we have seen in a long time.
Insurers have been releasing money from reserves over the past few years to keep competitive, but this is drying up and premiums are having to rise.
' The Deloitte figures suggest that premium inflation is accelerating.
In April, AA Insurance reported a 5.
8% annual rise in motor premiums.
Ashton Berkhauer, head of insurance with comparison site uSwitch.
com, says: 'The number of people shopping around and not accepting their insurers' renewal has increased.
'Typically, 80% of customers renew with an existing insurer, but we've seen that slip to 65% for some companies.
'Drivers are under increasing financial pressure and so they are becoming more price sensitive than ever before.
'
Features that used to be standard in virtually all comprehensive insurance, such as third-party liability cover for driving any vehicle, or an extension of cover for short trips overseas, are disappearing.
Exclusive analysis for Financial Mail conducted by the British Insurance Brokers' Association found examples where comprehensive cover has been eroded.
Hayley Parsons, chief executive of comparison site gocompare.
com, says: 'The importance of comparison sites has meant it is key for insurers to get near the top of the rankings on price and they can do that by slimming down the cover.
' Graeme Trudgill, technical services manager at Biba, says: 'All the advertising is about price.
It's no longer focused on providing the right financial protection for the motorist.
'Even if an element of cover remains, the sum insured may be reduced.
Many insurers have lowered the limits for loss of items from the car, for accidental damage to the windscreen or for personal accident cover.
'And in some cases, such as an accident involving a younger driver, the compulsory excess charged has increased.
' Trudgill says: 'Think about what features matter to you.
Also, how much could you afford to pay in the event of a claim.
You may find that paying slightly more than the cheapest premium actually gives you a better value option.
' Despite this cutback insurance premiums are still on the rise.
Business information group Datmonitor have confirmed that insurance companies are losing money and as a result will raise their premiums to return to profit.
Figures showing there has been a 20% increase in the past 12 months.
Analysis by management consultant Deloitte has echoed these findings by revealing that premiums have risen by 8.
2 per cent in the past 12 months to £488 a year on average.
Catherine Barton (left), insurance partner at Deloitte, says: 'This is the biggest annual rise in premiums we have seen in a long time.
Insurers have been releasing money from reserves over the past few years to keep competitive, but this is drying up and premiums are having to rise.
' The Deloitte figures suggest that premium inflation is accelerating.
In April, AA Insurance reported a 5.
8% annual rise in motor premiums.
Ashton Berkhauer, head of insurance with comparison site uSwitch.
com, says: 'The number of people shopping around and not accepting their insurers' renewal has increased.
'Typically, 80% of customers renew with an existing insurer, but we've seen that slip to 65% for some companies.
'Drivers are under increasing financial pressure and so they are becoming more price sensitive than ever before.
'
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