Motor insurance jargon driving motorists round the bend
Six in 10 drivers in the UK are confused by motor insurance jargon, according to research carried out by Go.Compare Car Insurance.
It found that just 39% of drivers understood the meaning of ‘compulsory excess’ and ‘voluntary excess’.
The percentage is even lower among drivers aged 16 to 24, with only 13% saying they knew the difference between the terms. This rises 57% of those aged over 55.
In the event of an accident, drivers will have to pay both compulsory and voluntary excess. Compulsory excess is decided by the insurer while the policyholder can choose the voluntary excess, with a higher figure often resulting in lower premiums.
Motor insurance jargon
Meanwhile, other terms that are not understood by motorists include policy exclusion (71%), additional excess (69%), and legal assistance (62%).
Tom Banks, Go.Compare Car Insurance spokesperson, said: “Excess clearly remains a misunderstood aspect of insurance, and as it can have a considerable financial impact in the event of a claim, this is worrying.
“While no one wants to spend more time or money when buying a policy, it’s important to make sure that you understand the terms and details of your policy. It’s important to do your research and pay attention to the fine print – including the limits of the policy cover, the excess levels, and any exclusions in place.”
