Defaqto has warned motorists to check their UK car insurance policies to ensure that their comprehensive car insurance includes new car replacement protection which is now thought to be essential to compensate or replace any damage to a new car within the first 12 months.
Mike Powell, Insight Analyst at Defaqto, revealed: "This benefit means that if your new car is damaged and the cost of repair is above a certain percentage (typically 60%) of its UK list price, or it is stolen and not recovered, then your insurance provider will replace it with a brand new car."
There are definite perils to consider with new car replacement cover. Defaqtos recent study found that 8% of comprehensive UK car insurance policies did not include new car replacement cover.
Meanwhile many car insurance providers implement a payment threshold before paying out and providing a brand new vehicle. 82% of policies that do cater for new car replacement protection use a 60% cost of repair threshold before providing drivers with a brand new car replacement.
Mr Powell admitted: "Whichever car insurance policy you purchase, always check the policy wording as the cover provided is not always the same with each insurance provider."
CompareInsurers.com is managed by a team of insurance professionals and car enthusiasts. Our aim is to enable you to find all the information you need to get a competitive UK car insurance quote. With over 50 UK car insurance providers, you can be sure of finding the quote and the information you need.