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Car finance customers warned about the 'disappearance' of fully comp insurance

Motorists are being warned of 'alarming examples' where fully comprehensive car insurance has been eroded.

Motorists are being warned of 'alarming examples' where fully comprehensive car insurance has been eroded.

Research carried out by the British Insurance Brokers' Association (Biba) for the Financial Mail, shows that previously standard features such as third-party cover for driving any vehicle and extended cover for short overseas trips are disappearing from comprehensive policies.

In addition, courtesy cars and recovery of uninsured losses when the customer is at fault are becoming costly optional extras, the report states.

Hayley Parsons, chief executive of gocompare.com, says comparison sites mean it is key for insurers to get to the top of the rankings and they can achieve this by slimming down the cover.

Biba's Graeme Trudgill agrees, adding: "All the advertising is about price.

"It is no longer focused on providing the right financial protection for the motorists."

He says many insurers have lowered the limits for loss of items from the car, accidental windscreen damage and personal accident cover.

Sainsbury's Car Insurance this month urged motorists planning to take their cars abroad to inform their insurer before they set off, as if they don't they could find their comprehensive cover reduced to third party.

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