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Car insurance customers should have replacement cover

Published: 27/03/2010 by Comments


Car insurance expert, Mike Powell, has warned drivers who are shopping for a new car to make sure their new vehicle has proper insurance cover. Although insurance is a legal obligation, a surprising number of motorists pay little attention to the fine print when treating themselves to a new car and, because of this, could be left without important features that will protect their new purchase in the long run.

Powell, Insight Analyst at Defaqto, advised that people double-check their policy features before signing on the dotted line for their new vehicle. He explained that ‘new car replacement’ is an essential feature for your insurance check-list.

“This benefit means that if your new car is damaged and the cost of repair is above a certain percentage of its UK list price, or it is stolen and not recovered, then your insurance provider will replace it with a brand new car,” Powell explained.

However, out of the 215 policies analysed by Defaqto, 8% did not include new car replacement cover, and 10% apply a 50% cost of repair threshold before providing a new set of wheels. The majority, at 82%, apply a higher cost of repair (60%) before offering a new replacement vehicle.

Consumers are also urged to wise up when it comes to insurance, as they need to be aware that most policies only provide cover for cars up to 12 months old, or state that the policyholder or their partner must be the first and only registered owner of the car in order for cover to apply - so it’s always best to do your research before making a purchase.

Looking to switch car insurance providers? Compare car insurance online and find the perfect deal to suit your circumstances.


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