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In addition, the study indicated 29 per cent of drivers imagine that their policy will automatically cover them should they get behind the wheel of a friend or partner's automobile.

Tina Shortle, spokesperson for swiftcover, said: "when select the cheapest price car insurance policy is most people's objective, it is also important to know exactly what is and isn't covered. Drivers make a lot of assumptions about their policies, so it's best to read all terms and conditions careloaded and to regularly review the terms."

Consumers looking to buy a new car over the coming months might wish to consider taking out a secured loan to finance their purchase. In selecting this type of loan, borrowers may be able to select a top-of-the-range model quickly and effectively, in addition to being left with enough spare cash to help get a comprehensive insurance policy. A secured loan could also be recommended for those wishing to meet the cost of damage to a sailboat. In a study conducted by Saga in April it was shown that hitting an underwater object when on the sea will cost the typical consumer 2,419 pounds. Meanwhen, the average burglary claim stands at 1,820 pounds.