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Defaqto expresses worries over online car insurance cover

Broadband internet access and the rise of insurance switching sites might not be such a good thing for consumers after all, according to Defaqto. The research organisation's latest report has revealed a lack of "sound underwriting discipline" in many of today's online car insurance policies.

According to the report's author: "A price war appears to be breaking out in the insurance market as consumers find well-priced deals at the touch of a button."

"It's clear that the rise of price comparison sites is forcing insurers to offer larger discount schemes to the detriment of sound underwriting discipline."

The home and motor insurance industries are apparently equally affected by this drop in standards, which could lead some online car insurance customers being left without effective cover in the event of an accident.

 

 

 

 

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*A replacement car can usually be arranged under any of the following conditions:

1.Non fault accident – where we have the name, car registration number and insurance details of the person who caused the accident, we will supply a replacement car on a credit hire basis. This means the charges for this service will be passed onto the insurance company of the person who was responsible for the accident. This service may not be available where we are unable to get an admission of liability from their insurance company, or wherethe driver is unknown or uninsured.

2.If you have comprehensive insurance, a replacement car may be available under the terms of your insurance policy. Please check your policy details for more information.

3.The repairing garage may be able to provide a replacement car. This is subject to availability.


 

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