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Purchasing online car insurance can lead to confusion

The majority of consumers are comfortable with buying car insurance online. However, the study warns that people need to pay close attention to policy features

New research reveals that the majority**** of consumers are comfortable with buying car insurance online. However, the study warns that p****eople need to pay close attention to policy features when insuring a new car online without advice.

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As the survey by independent financial research company Defaqto concludes, a total of 86% of consumers feel comfortable with researching and buying motor insurance online without professional advice.

Despite this obvious consumer confidence, the study warns that people following this type of purchase should pay extra attention to policy features, rather than focussing on the price alone.

Brits paying for car insurance online should compare policies first to ensure they arrange cover that meets their needs in order to make a wise purchase.

Car insurance** policies; a tricky area**

Despite the fact that 95% of comprehensive car insurance policies would replace a new car if it were to be written off or stolen, the level of cover provided varies across the market, according to the report.

Firstly, the period within which this provision applies varies between policies, ranging from 12-24 months. Secondly, with the cost of repair required for full replacement ranging from 50-70% of the car's list price, the threshold of damage required for a new car to be replaced also differs across the market.

Furthermore, although 57% of policies offer new car replacement for vehicles imported from overseas, the study reveals that the remainder of policies will not extend this cover to them.

"To ensure they get the right type and level of cover for their new car, people need to focus first and foremost on pinpointing the features they need from an insurance policy and identifying the policies that provide that cover,” commented Mike Powell, Defaqto's Insight Analyst for General Insurance.

"Although important, price should not be the primary basis for comparison – after all, buying the cheapest cover available could end up being the most expensive option if it doesn't provide adequate cover for someone's new car,” continued Powell.