According to the results of a recent research project published by an independent insurance broker in the UK, more than three out of every four UK motorists are lacking in motor car insurance cover in the event of vehicle write off or theft.
Insurance brokers ALA found that 77 per cent of drivers in the UK have not taken out cover from their car insurance companies matching the value of their vehicles. This means that the current trend among British consumers to look for discount car insurance in order to save cash could become a false economy if their vehicle suddenly needs to be replaced.
ALA has issued recommendations to these underinsured motorists that they should fill in the gaps in their cover through the aptly named Guaranteed Asset Protection scheme. This GAP cover aids motorists in making certain that the full value of their vehicle is covered in the event of the need for it to be replaced arises.
With nearly 2,060 participants in the study, the research findings found that 11 per cent of car owners purchased their vehicles through the use of an installment plan, while an additional ten per cent had gone to the bank to take out an auto loan to cover the difference. However, both types of finance increase the risk of a car owner, as if their vehicles are either stolen or totaled, they would be left high and dry making unpleasantly costly repayments.
One out of 10 study participants indicated that their car had been written off over the past 12 months. 6 per cent also reported that their car had been stolen over the same period of time.