Read our guide to the most commonly held motor insurance misconceptions before you sign up for a policy.
By Chris Torney
Shopping around to get the best car insurance quote is one of the best ways to save money on cover and that’s a fact. But there are a lot of misunderstandings about car cover which could mean you pay more than you need to or drive without proper cover.
So you are in the know; here’s a list of the ten most commonly-believed car insurance myths.
Myth 1: You’re automatically insured to drive other cars if you have a comprehensive policy.
This may be the case on some policies, but it doesn’t apply every time. Driving-other-cars cover is unlikely to be extended to the under-25s, and may also depend on your occupation.
Myth 2: Your renewal premium is guaranteed to be cheaper than your insurer offers to new customers.
Sadly this isn’t the case: renewal premiums and new business premiums are often calculated differently. That’s why shopping around on a price comparison site and taking out a policy as a new customer can save you money.
Myth 3: Garaging your car means cheaper premiums.
Oddly enough, this isn’t always the case either. This is because the risk of having an accident whilst parking your car in the garage is greater than the risk of your car being stolen or hit when parked on your drive or in the street, statistics show.
Myth 4: Driving for business use means higher premiums than social or commuting use.
This is not always true: people who require their car for business purposes are assumed to take better care of it and drive more safely those whose car isn’t such an important part of their living.
Myth 5: Once you reach 25 your premiums fall dramatically.
Not necessarily: while age is a key rating factor in insurance, it’s just one of many individual factors that all contribute to the overall cost. (See this graphic which explains how car insurance prices are calculated.)
Myth 6: Third-party cover is cheaper than comprehensive.
This is not always the case: some insurers have raised premiums for third-party or third-party, fire and theft cover because of the number of higher-risk drivers who sign up for these kinds of policy (believing them to be cheaper).
Myth 7: Non-fault claims won’t affect your insurance premium.
In fact, if you’re in an accident that wasn’t your fault, you could find premiums rising.
Statistical evidence from many insurers state that after having a non fault-claim you are more likely to have a fault claim within that policy term.
Myth 8: You’re always guaranteed a courtesy car if you have an accident.
A courtesy car is likely to be subject to availability, and in most cases it’s only offered if the car is repairable and taken to an insurers’ approved mechanic. If the car is stolen or written off, a courtesy car is not always provided.
Myth 9: I don’t have to tell my insurer about convictions that are not on my licence anymore.
In fact, most insurers ask if you’ve hand an convictions within the last five years: in some cases the conviction might have been spent but you still need to declare that to your insurer (for example speeding convictions are spent after four years).
Myth 10: Your insurance covers you for any accident that you cause.
Usually but not always: if you crashed and were convicted of drink driving, your insurer would be likely to turn down your claim.
