Research: Many car insurance policies lack ULR cover

Many car insurance polices do not include ULR cover as standard, new research has shown.

Many car insurance policies in the UK do not include any cover for uninsured loss recovery (ULR), new research has shown.

According to data released by Defaqto, which analysed 223 comprehensive breakdown car cover policies, more than one-quarter - 28 per cent - of these packages do not offer any ULR protection, while just over half - 51 per cent - of annual insurance policies only do so at an additional cost to the customer.

However, the study - which was intended to provide consumers with information about how they could get costs back for any uninsured crashes or problems - also found that the remaining 21 per cent of car insurance products do afford their holders ULR cover as standard.

Mike Powell, insight analyst for general insurance at Defaqto, commented that it is important for people to ensure their policy covers everything they want it to prior to agreeing to pay for it.

In related news, Graeme Trudgill of the British Insurance Brokers Association said recently that motor insurance companies are doing all they can in order to stop fraudulent claims being made.

By Joe Letts