A report by insurance data analytics expert Consumer Intelligence revealed that only one-in-five car buyers understand the add-on products within their motor insurance policy. Breakdown cover was identified as the least well-understood additional policy with more than two out of five wrongly believing all policies provide cover from the first instalment.
John Blevins, consumer intelligence product manager, said: “Add-ons are clearly very much valued by drivers as they are willing to pay extra on their car insurance for them. It is however worrying that so few people fully understand the cover they have and are either not making the full use of it or believe they have more cover than they do.”
The report also revealed that only 22% of motor insurance customers were confident they understood the full details of the cover provided whilst 24% admitted being in the dark about the cover they purchased. It further revealed that 89% of drivers are willing to pay for at least one add-on with Protected No Claims Discount seen as the most valuable.
To download the report on add-ons and market bench-marking please visit https://www.consumerintelligence.com/motor-insurance-add-ons-report.