Insurance customers 'should check the exact cover on policies'

People looking for an insurance policy should ensure that they are aware of the exact cover it provides before purchasing in order to avoid costly mistakes.

This is according to Peter Gerrard, head of research at comparison website moneysupermarket.com, who said that many people neglect to read the key facts document which accompanies the policy.

This could result in them not being covered in certain circumstances, which may cost money in the event of an accident or other emergency.

"Key facts documents are basically only one or two pages and it details in layman's terms what is covered in the policy and any exceptions to that. The policy wording, when you read it, can be a bit ambiguous. You can read it and think 'well, what does that mean?', but the key facts eliminate that," Mr Gerrard said.

Moneysupermarket.com last week advised readers of the Daily Mirror newspaper on the best way to purchase appropriate insurance policies. It warned that the cheapest policy may not always be the best in terms of cover and that customers should shop around for the best cover at the best price.

Meanwhile, last month, Sean Tipton, press officer at the Association of British Travel Agents, warned people about to go on holiday that travelling without insurance is "incredibly irresponsible" as they cannot be sure that an accident will not befall them.