Defaqto has published a report that says motor insurers are not doing enough to ensure customers understand the financial implications of the choices they make during the online quote-and-buy process. It says this makes it difficult for customers to make informed decisions and for carriers to fulfil the Consumer Duty.

The report points to unexpected costs when claims are made because insurers often fail to explain what an excess means in practice. Similarly, it says policy cancellation costs are not detailed in terms of what a customer would receive back if they cancelled their policy.

It also says that insurers are not doing enough to make sure customers avoid buying cover they have elsewhere. This applies particularly to covers such as legal expenses, breakdown and personal accident.

Sam Leonard-Williams, product director at Defaqto, said: “In a quote journey, insurers are trying to do several things at once, convert the customer, explain a genuinely complex product and often introduce add-ons on top. That's a real balancing act and I have sympathy for how hard it is. But our research shows the balance is too often tipped towards presenting information rather than helping people understand it and access and understanding are not the same thing.

“Across the 25 journeys we assessed, scores ranged from 39.5 to 79.8 out of 100, a gap that shows just how much a customer's experience still depends on which provider they happen to choose. No single provider performed strongly across every part of the journey. But, and this is the crucial point, in every area we measured, at least one provider was doing it well. So, we're not setting an unrealistic bar; we're pointing to what's already being achieved elsewhere in the market.”