Skip navigation
26 Oct 2020
Chris Torney Chris Torney

The top 10 car insurance myths

Share:

Close up of a man driving a car

Beware of these common misconceptions before you get a car insurance policy, as you might get caught out later on.

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. And our research shows that 90% of drivers believe at least one of these myths*.

 

Compare car insurance quotes

Get a quote

 

Myth 1: You’re automatically insured to drive other cars if you have a comprehensive policy

Nearly one in four (24%) drivers believed a comprehensive policy entitled you to drive other cars.

This may be the case on some policies, but it doesn’t apply every time. 

Driving-other-cars (DOC) cover is unlikely to be extended to the under-25s, and may also depend on your occupation.

READ MORE: Driving other cars on your car insurance

 

Myth 2: Your renewal price is cheaper than the prices your insurer offers to new customers

Ever the savvy shoppers, only one in 10 (10%) of drivers thought this was true.

Car insurance renewal prices and premiums for new customers are often calculated differently.

And though the Financial Conduct Authority (FCA) has drafted plans to put a stop to this, new customers often have cheaper prices than loyal customers.

That’s why it’s worth comparing prices every time – you might be able to grab a lower-priced policy as a new customer

 

Myth 3: Keeping your car in the garage means lower insurance costs

Almost two-thirds (65%) of drivers thought a garage always lowered your insurance price.

Oddly enough, this isn’t always the case.

In some cases, a car parked in a garage overnight can be riskier than parking it out in the street.

This is all down to statistics – it could be that a particular area has a higher number of accidents due to people hitting their car while parking in a garage.

 

Myth 4: Driving for business use means higher prices than social or commuting use

Half (50%) of drivers believed a business policy was more expensive.

Bus this isn’t always true. People who use their car for business may have more to lose if they damage their car.

They could be assumed to take better care of it than someone who just uses it for the school run, and so may not have a higher price.

READ MORE: Classes of use explained

 

Myth 5: Once you reach 25 your premiums fall dramatically

This is one of the most common myths, and is believed by Almost half (46%) of drivers.

It’s the golden age for young drivers everywhere – once you hit 25, you suddenly get cheap car insurance. Right?

Nope. Although age is a key factor in working out prices, it’s just one of many factors that make up how much you pay.

 

Myth 6: Third-party cover is cheaper than comprehensive

Over one in three (36%) of drivers assumed that that a lower level of cover meant lower prices.

It stands to reason that if you have a downgraded level of cover, you pay less for it.

Not true. Some insurers have raised prices for third-party only or third-party, fire and theft cover. This is because of the number of higher-risk drivers who sign up for these kinds of policy.

READ MORE: Car insurance policy types

 

Myth 7: Non-fault claims won’t affect your insurance costs

This is a weird one. You’d think that if an accident wasn’t your fault, then the other person’s insurance would go up, not yours. And it's something that nearly a fifth (19%) of drivers believed to be true.

In fact, statistics show that after having a non-fault claim you are more likely to have a fault claim not long after.

As a result, you could see prices go up.

READ MORE: When to make a claim on your car insurance

 

Myth 8: You’re always guaranteed a courtesy car if you have an accident

Almost one in 10 (9%) thought this was true. 

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 insurer's approved mechanic.

If the car is stolen or written off, a courtesy car isn’t always provided. At this point, you may wish you'd chosen hire car as an add-on when taking out the policy. 

READ MORE: Car insurance extras: which do you need?

 

Myth 9: I don’t have to tell my insurer about convictions that aren’t on my licence anymore

Nearly one in five (19%) thought that once a motoring conviction is cleared with the DVLA, you don't need to tell your insurer about it.

Most motoring convictions stay on your driving licence for four years. But insurers ask if you’ve had any convictions within the last five years.

In some cases the conviction might no longer be valid, but you still need to declare that to your insurer. So if you had a speeding conviction four years ago, it would no longer be on your licence, but you'd still need to tell your insurer. If it was give years ago, you wouldn't need to tell them. 

READ MORE: Would you ever lie to get cheaper car insurance?

 

Myth 10: Your insurance covers you for any accident that you cause

In in five (20%) believe that an insurance policy means that any accident is covered.

This is usually the case, but not always. If you crashed and were convicted of drink-driving, your insurer could to turn down your claim.

The same applies if you were negligent or caused the damage intentionally.

 

*Figures taken from omnibus research carried out by One Poll on behalf of Confused.com. This was an online poll of 2,000 UK adults who drive (nationally representative sample). The research was conducted between 16 October 2020 and 20 October 2020. 

Share:

Compare car insurance

See how much you could save. Compare cheap quotes from up to 116 providers.

Get a quote

Found this useful? Try these:

Car insurance

Compare quotes from up to 116 providers all in one place.

Get a quote