Car insurance ‘designed to confuse’

Many people believe car insurance polices are designed to confuse customers, a poll of consumers has found.

A survey by insurer Swiftcover discovered that this view is held by 18 per cent of adults, while many others have problems understanding parts of their documents.

Among areas of confusion, 23 per cent do not know what voluntary excess is, while 42 per cent cannot understand from their policy what they are covered for.

The firm noted that voluntary excess is used by some motorists to lower the cost of premiums.

Commenting on the survey, marketing director Tina Shortle said: “Some drivers struggle with the terms used in their insurance, but it’s vital that they read and understand their insurance policies so they know exactly what they are covered for.”

Car insurers have been reassuring motorists affected by floods this week that any damage will be covered in their policies.

Esure stated last week that in the summer of 2007, the industry paid out £35 million to drivers affected by the flooding seen in places like Hull and the Severn valley.

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