‘British motorists ‘driving in the dark’ overseas’
July 26, 2007 at 12:54 pm
British holidaymakers are ‘driving in the dark’ when they travel abroad by car, with as many as two thirds (68 per cent) having no idea whether they are covered by their car insurance provider or not.
That is according to independent price comparison website uSwitch.com, which reported recently that one in ten (2.5 million) drivers wrongly assume that they are covered by their travel insurance for any motoring related mishaps they may have abroad, when in fact, they are not.
The website warned motorists that under European Union laws, providers are only required to offer third party insurance. This leaves many drivers covered for damage they cause to another vehicle or driver, but unprotected when it comes to theft, accidental damage to their own car or any injuries they may sustain while at the wheel.
Aron Thompson, head of insurance at uSwitch.com, said: “This is a major issue for holiday makers as they can end up facing an unpaid claim if they drive their car abroad without getting their insurance lined up properly beforehand. This is a classic case of ‘know before you go’.
“Many providers demand extra payment from drivers to take out insurance for overseas use,” he continued. “Even if a policy does extend to cover driving abroad, motorists need to be aware that insurers often limit the number of days that a car can be driven abroad in any one year, and that sometimes you cannot use this allowance in one go – you have to return to the UK in-between.”
Studies carried out by independent bodies, like comparison website MoneyExpert.com, indicate that more than one quarter of all comprehensive motor insurance policies limit cover outside of the UK to just three days. Currently, 25 policies available on the market offer no cover beyond statutory third party insurance outside of the country.
Although the average period of free foreign cover across all comprehensive motor insurance policies is 56 days, Direct Line, Egg, Esure, Halifax, MBNA, Sheila’s Wheels, Tesco and Virgin are among those providers limiting cover to three days. With such a policy, holidaymakers on a two week trip would be without cover for more than three quarters of it.
“The exodus to France and Spain is part and parcel of the British summer, and many holidaymakers prefer to drive. If you are planning a road trip to the continent you can’t take it for granted that your car insurance will cover you abroad,” said Sean Gardner, chief executive of MoneyExpert.com.
“Many of the biggest names in car insurance will only cover you for a couple of days. That might get you to the Costa Brava and back but it certainly isn’t enough for a decent holiday,” he said. “There’s no need to get caught out as there are a number of comprehensive policies on the market which will cover you without a charge. The key is to check before you buy.”
Around 47 policies on the market (one in five) come with unlimited free cover as standard for travel in European countries.
