The car insurance market in the UK is in turmoil, with many drivers calling out what they see as misleading practices. While millions believe they are covered by comprehensive policies, a significant omission could cost them dearly. A leading organisation is calling for a reform of these policies to put an end to what they describe as misleading practices. But what exactly is wrong with these insurance offers?
The Hidden Flaws of ‘Essentials’ and ‘Value’ Insurance Policies
One of the main concerns highlighted by the AA is that car insurers are marketing “essentials”, “value”, and “basic” insurance products as comprehensive packages, while omitting important features that drivers expect. According to research by the AA, a significant 84% of drivers expect windscreen cover to be included in comprehensive policies. However, some insurers are stripping this crucial protection from their “essentials” and “value” packages, leaving motorists vulnerable.
In some cases, these policies do not give drivers an option to add windscreen cover back to their plans. This omission leaves many drivers at risk of having to pay up to £700 or more to replace a damaged windscreen—an unexpected cost that many may not be financially prepared for.
The Sacrifices Drivers Are Willing to Make
The AA’s research further reveals what drivers are most willing to sacrifice in their car insurance policies. The survey of over 10,000 motorists showed:
- 60% of drivers would be willing to forgo cover for travel in Europe.
- 50% would consider dropping breakdown assistance.
- 44% would choose not to have protection for in-car audio and sat-nav equipment.
While these coverage areas may seem dispensable to some, the loss of windscreen cover can lead to significant financial strain. And because many drivers mistakenly believe windscreen protection is included in “comprehensive” policies, they are unprepared when the time comes to replace or repair a damaged windscreen.
The Importance of Transparent and Accurate Car Insurance Policy Classification
The AA believes it is misleading for insurers to market these stripped-down packages as “comprehensive” insurance. Instead, the AA is calling for these policies to be reclassified as enhanced third-party fire and theft plans, a label that would more accurately reflect the coverage that is being provided. This would ensure that consumers are fully aware of what they are purchasing and could avoid potential pitfalls when making claims.
Jack Cousens, head of roads policy at the AA, stated: “At the same time, ‘essentials’, ‘basics’ or ‘value’ makes drivers think that some broader benefits have been dropped from the policy, leaving just the core protections in place.
Many are discovering that windscreen cover, a part of a policy they believe is sacrosanct, has been stripped out to create products consumers don’t want and doesn’t meet their needs.”
Potential Cost of Windscreen Damage
Windscreen and glass damage is one of the most common claims made by drivers, and it is often costly. A typical windscreen replacement can cost anywhere from £300 to £700, depending on the vehicle and the extent of the damage. With many “comprehensive” policies no longer covering this, drivers are left to foot the bill themselves, which can be a serious financial burden.
The AA’s call for clearer and more honest marketing of car insurance policies is not just about fixing misleading practices, but also about ensuring that drivers are not unknowingly left exposed. In an era where car insurance is already a major financial commitment, transparency and trust should be at the forefront of the industry.
What Needs to Change?
In response to this issue, the AA is urging the insurance industry to adopt more transparent and consumer-friendly practices. The goal is for insurers to :
- Clarify what is and isn’t covered in their policies, especially when it comes to windscreen and glass protection.
- Reclassify policies that exclude crucial coverage as enhanced third-party, fire, and theft, not comprehensive.
- Ensure that all comprehensive policies include the coverage that most drivers expect.
With the industry facing increasing scrutiny and a need for greater accountability, these changes could ensure that drivers are not caught off guard when they need their insurance most.
I had key cover with my insurance. But when I lost the key, the RAC wouldn’t recover me to the grg because I didn’t have key cover also wit them. This was extremely misleading and expensive for me. I feel all insurance just do absolutely everything to get out of paying out.