- 10
- Sep
As many as 1.5 million vehicles throughout Britain are at risk of flood damage as experts predict more heavy downfalls, uSwitch has warned.
The price comparison site has reported that the car insurance industry is preparing to fork out tens of millions of pounds in claims as a result of the bad weather, which is set to hit the north-east and south-west of England, as well as south Wales in the coming days. It warned that following on from this, those living in at risk areas could see their car insurance premiums jump by as much as 26 per cent should they need to make a claim as insurers look to recoup their losses. Such inflated costs may in turn have an effect on their ability to manage other costs such as credit card and personal loan payments.
Meanwhile, for the one in four motorists who currently possess third-party cover, being hit by the storms may be particularly financially damaging as they will lack protection against flooding. In such circumstances, people may turn to savings or a car loan to pay for damages or a new vehicle.
To prevent such a scenario arising, uSwitch has urged people to overlook the short-term savings associated with third-party insurance and protect themselves in the long term by taking out a comprehensive policy that will pay out in the event of water damage. It pointed out that young people are particularly at risk of finding themselves without cover as many younger motorists have been priced out of comprehensive cover by inflated premiums imposed on them due to their statistically high risk of making claims.
Ashton Berkhauer, insurance expert at uSwitch, explained: “Last summer we saw widespread flooding across the country with the insurance industry forking out over two billion pounds in claims. Flooding is an issue for many motorists, yet too many people are failing to learn lessons from 2007 and secure adequate cover should the worst happen. If drivers do not insure their cars properly, they could suffer the financial consequences long after the flood waters recede. Insurers must take responsibility to provide their customers with clear information relating to flood claims at the time a policy is taken out.”
He added that drivers in at risk areas “really should” check with their insurer to establish whether their current policy will protect them in the event of flood damages.
Further advice offered by Mr Berkhauer to those who find their car affected by flooding included getting a qualified mechanic to check the vehicle as soon as possible. Meanwhile, driving the vehicle before being told it was safe to do so was discouraged as this could both increase damage to the car and potentially invalidate a claim.
In a report published last year by the AA, a notable rise was seen in the cost of home and car insurance premiums after the floods hit during the summer. The average motor policy cost a record 1,042 pounds during the third quarter of 2007. For those who have struggled to keep up with motoring costs, taking out a car loan could allow people to make long-term savings by purchasing a vehicle which is less expensive to insure.
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