UK motor insurance news

Regulation concern over online car insurance policies

Online car insurance companies are in the spotlight following industry concerns about how well policy details are being conveyed to customers.

Whilst nearly all online car insurance providers do provide a link to terms and conditions of the motor insurance policies, some argue that they are not visible enough. If this is an accurate observation, it could lead to customers misinterpreting car insurance quotes and buying policies without understanding fully what they cover.

A spokesman from Foolproof Business Services said: "If providers know that there are common issues that keep catching people out, then they should make more of an effort to flag this up somewhere other than in the small print."

One of the most common misunderstandings is over policy excesses. There is usually a compulsory excess and a voluntary excess, and those concerned about online car insurance policies argue that many companies do not make the amount of compulsory excess clear when presenting their motor insurance quotes.

Gareth Jones, of the insurance giant Allianz Cornhill, explained the regulatory differences between buying car insurance online and over the phone.

He commented: "If a consumer buys a policy over the phone, the advisor has a regulatory responsibility to explain the policy details. However, if a consumer has clicked online to say that they accept the terms and conditions, then that is a legal agreement."

He went on: "With an increasing number of people buying online rather than over the phone, this presents a regulatory dilemma - consumers are not reading all the policy details and insurers can do little about it."

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