Check your car cover before driving abroad

June 23, 2008 | posted by Pam Atherton in Insurance | comments (0)

4.3 million motorists plan to drive their car to Europe this summer, despite having poor knowledge of their insurance cover and continental European driving laws.

Research by car insurer, ‘Sheilas Wheels, http://www.sheilaswheels.com, shows that over 1.5 million UK motorists alone will be driving to Europe for a day trip or long weekend.

The poll shows that 15 per cent of motorists assume they have comprehensive cover to drive abroad, even though this is not the case unless you alert your insurer.

Furthermore, only one in ten car owners actually call their insurer to check whether or not they are covered for driving abroad.

Motorists may think that having a Green Card  means they’re covered when driving abroad.  However, this only provides proof that you have the appropriate minimum level of cover required to drive in that country, which is usually only ‘third party’ cover. 

You need to call your insurer to get the cover extended to fully comprehensive and alert your insurer that you plan to take your car to Europe, in case you need to make a claim.

The top four concerns motorists have while driving abroad are: being involved in an accident (67 per cent); having to drive on the right hand side of the road (49 per cent); not being able to ask for directions in a foreign language (46 per cent) and getting lost on unfamiliar roads (41 per cent).

Of lesser concern are unfamiliar traffic rules and regulations (40 per cent), not being able to understand foreign road signs (38 per cent) and sustaining damage to their vehicle while abroad (10 per cent).

Surprisingly, nearly one in three motorists think that the driving laws in continental Europe are the same as in the UK.  Over half drive illegally while abroad, by not carrying a warning triangle in their car - one of the compulsory requirements when driving in
France, Belgium and Germany, as well as having headlamp adjustments and displaying a GB sticker.

Over 3.6 million motorists don’t know the speed limit on foreign roads, with 84 per cent of respondents not knowing that  the speed limit on French motorways is 130km per hour.  If caught speeding you could  face hefty on-the-spot fines.

‘Drink drive’ laws are stricter in France, Belgium and Germany where the blood alcohol level limit is (0.5mg/ml), than in the UK where it is 0.8mg/ml.

Jacky Brown at Sheilas’ Wheels car insurance says: “When planning to take a car to Europe, it is crucial for motorists to call their insurer and tell them that they want to extend their level of cover for driving abroad.

“It is also vital that motorists understand the basic rules and regulations for driving on foreign roads and be fully prepared by planning their journeys, carrying the essential equipment and giving their car a maintenance check before setting off.”

To check out your car insurance cover against other insurers, visit  Defaqto’s fantastic motor insurance comparison tool.

http://www.defaqto.com/consumer/insurance/motor/compare-car.aspx

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FSA to intervene on comparison websites

May 9, 2008 | posted by Pam Atherton in Insurance, Investments, Mortgages, Pensions, Savings | comments (0)

It is good to hear that the FSA intends to review the price comparison website market, after years of complaints about the lack of  independence and accuracy of information provided by certain websites.

The price comparison market has grown exponentially over the last few years, with two thirds of people using a comparison site before buying home or motor insurance.

Having studied 17 insurance comparison sites, comprising 95 per cent of the market, the FSA said results were mixed and that it had found evidence of sites failing to make details of insurance deals clear, and  providing quotes which were no longer available.

The review was triggered by research by the British Insurance Brokers’ Association, whose members have encountered increased competition from comparison sites.

The FSA’s research found that consumers often had difficulty accessing and understanding the small print of policies offered online and that headline grabbing quotes often applied to only a very small group of consumers.

There is also the issue of whether such sites are ‘treating customers fairly’ which the FSA is now monitoring more closely. There was also found to be a lack of transparency as to what extent the sites were truly ‘whole of market.’ 

Some sites require insurers to pay a fee to have their quotations featured, leading to some insurers, such as Direct Line being excluded. Defaqto, which is entirely independent and whole of market and supplies the FSA with comparison data for mortgages, savings, annuities and some investment products, has queried the independence of certain comparison sites and wholeheartedly welcomes the FSA’s long overdue review.

Many of the FSA’s comments  reflect  the findings of Defaqto’s own studies into this area, both in October 2007 and in its latest Insight Report ‘UK Motor Aggregators 2008 - Still much to do.’ which is due to be published next week.

The forthcoming report from Defaqto studies the workings of 41 separate motor insurance aggregator websites, and looks in detail at how they perform over 35 separate criteria. “In October 2007 we discovered a number of serious issues with the way some aggregator websites worked.

The findings in our latest report show that many of these issues are still with us,” says report author Mike Powell,  principal consultant at Defaqto.  www.defaqto.com  allows customers to check some of the most important elements of cover for all comprehensive motor insurance policies held on its Aequos Database, as well as many other financial products.    

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