We have previously referred to the importance of reading the fine print on car insurance policies. Do you read the insurance policy received from your car insurer – and do you understand the terms and conditions referred to within the policy?
I have come across rather alarming findings from a UK study by motor insurer swiftcover.com. The study reveals that almost one in five drivers (18%) think car insurance policies are purposely designed to confuse them!
Do the general public understand the legal terms and jargon used in car insurance policies?
The UK survey found that 42% of Brits struggle to understand the terms used in their car policy, leaving them uncertain over what they are actually covered for. There is much uncertainty of key terms such as …
- voluntary excess
- fully comprehensive cover
- social, domestic and pleasure use
- material facts
On the Car Insurance Blog we have added several blog posts on how to find cheaper car insurance. We have made reference to asking questions and finding insurance quotes online. To ask these questions it is important to have a basic understanding of car insurance and the jargon used in the car insurance industry.
It is very important that vehicle owners read and understand their insurance policies so they know exactly what they are covered for. Perhaps the most alarming finding from the study is that 17% of motorists never bother to read their insurance policies in the first place.
I believe that this might be much more than 17%! Most consumers and insurance clients are simply too ashamed to admit that policy documents are thrown somewhere in a file or cupboard. They find the contents either boring or too technical and are too lazy to make time and read the contents!
The attitude to studying the contents of car insurance policies is often that of misguided trust. We believe that the car insurance policy is merely a “pro forma” and “standard” contract and if this contract has been signed by thousands of other policyholders – there should be no special need for caution…
Even though it might be difficult to change the lazy attitude of many consumers, we might be able to provide explanations and an easy understanding of technical car insurance jargon. It should be sound and proper financial service delivery by car insurers to provide to their clients an “easy to understand “ summary of these terms and conditions.
We have included on this car insurance Blog a section titled “Glossary of Car Insurance Terms and Conditions”. This should provide our vehicle owners with an easy guide to understanding car insurance terms and conditions.
We would like to urge all our vehicle owners to read car insurance policies with caution and to ask questions. Know what you are covered for and don’t let yourself be confused by insurance jargon!