Defaqto urges car insurance customers to look beyond prices

Defaqto has stated that consumers should look further into car insurance deals rather than just opting for the cheapest product.

People seeking breakdown car cover should look beyond just the prices of such packages prior to making a decision on what product is best for their personal circumstances.

That is according to Defaqto, which recently published its annual report on the state of the nation's car insurance industry in an attempt to address the challenges and issues currently facing consumers in the market.

And, despite the fact that personal finance is high on the priority list of most customers following the recession, the report states that annual insurance policy holders should also consider other factors as well as the money involved.

The study goes on to note that the industry is now "at a crossroads" as insurers are constantly reviewing their premiums and underwriting losses are rising.

Mike Powell of Defaqto commented: "Encouraging consumers to simply choose the cheapest option could result in them making a very expensive mistake, especially when they realise that they are not covered when a claim is made."

Earlier this month Defaqto stated that many car insurance policies in the UK do not include provisions to cover uninsured loss recovery.

By Kate Guthrie