Car insurance must feature replacement cover, says expert

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Car insurance must feature replacement cover, says expert

Wed 24th Mar 2010

Mike Powell, insight analyst at Defaqto, said there were few policies such as this on the market offering a replacement car unconditionally and recommended that customers check the terms of a policy before agreeing to it.

He added: "Most policies will only provide cover for cars up to 12 months old, or state that the policyholder or their partner must be the first and only registered owner."

Defaqto found that just eight per cent of car insurance policies did not include the replacement feature, while 82 per cent asked for 60 per cent of the repair costs before providing a new set of wheels.

The Association of British Insurers reported that 268,400 motor insurance claims were made over the winter months, amounting to a total sum of £395 million.

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