Over 70 per cent of people thought they were getting a courtesy car free with their motor insurance although the cost was actually combined in their premium, according to new figures.

Tesco car insurance discovered motorists are unwittingly paying extra on their insurance for a courtesy car with many insurers misleadingly advertising it as a free service.

"Many insurers cleverly position a courtesy car as a free service, but in reality someone has to pay for it and that someone is ultimately going to be the customer," said Allan Burns from Tesco car insurance.

Insurers are not contractually obliged to provide a car to customers and contract small print can include phrases such as 'if a vehicle is available' and 'in non-fault claims only' to cover the situation.

Mr Burns added: "Many motorists are given no choice but to pay for a courtesy car service that offers little or no guarantees."

Another Tesco study found nearly 30 per cent of motorists who had expected a courtesy car when their one went off road did not receive one for some or all of the time while some were not eligible as companies only allowed them after an accident.