Whether you’re renewing your cover, or you have just made the leap from green to pink, finding the right insurance for you can be trickier than changing your first tire. The quest for the most cost-effective cover is made even harder by endless car insurance myths, but never fear. We debunk 12 insurance myths and sort fact from fiction, so you don’t blow your cover.
1. Letting your policy renew automatically is cheaper than switching insurers
Sure, this is more convenient, but remember renewal quotes and quotes for new customers are often calculated differently. Use a comparison site to compare quotes from the UK’s leading insurers to get the best deal. There are considerable savings to be made by switching providers. Remember insurers are more likely to offer more competitive deals to new customers than reward loyalty to existing ones.
2. Garaging your car is a sure-fire way for a lower premium
This is another common misconception. It is generally believed that garaging your car on your insurance quote will astronomically lower your premium. This really isn’t the case. In fact, garaging your car can hike up the price of your premium. It is all down to statistics; it may be your area has a higher volume of accidents due to drivers bumping their cars while parking in a garage.
Be honest, the difference in street parking and garage parking is marginal anyway.
3. Red and black cars are the most expensive to insure
This is a myth that is so easy to debunk. It is a widely held belief that red and black cars are more expensive to insure. In fact, most insurers don’t ask the colour of the car. So, whether there’s a Crimson Crusader or your own Batmobile taking your fancy in the show room, go colour crazy.
4. Turning 25 halves your premium
Congratulations, you have reached halfway to thirty! Whilst you ponder where your twenties have gone and have that mini existential crisis, at least your car insurance will be exponentially cheaper…right? Not quite. Unfortunately, while age is a key factor in determining your insurance quote, it is one of many factors considered. So, don’t expect a birthday surprise from your insurer.
5. Third party cover is cheaper than comprehensive cover
It is traditionally assumed that third party cover is cheaper than comprehensive cover. It makes sense; less cover equals less cost surely?
Let’s bust this myth. Younger drivers are more likely to sign up for third party cover meaning some insurers have raised premiums for third party policies.
6. Fully comprehensive cover means you can drive anyone’s car
On the topic of comprehensive cover, while some comprehensive policies do still include this, many don’t. So, it’s important to check your documents before driving Dad’s expensive sports car.
But what happens if you crash Dad’s car? Aside from a very awkward discussion, your cover will be third party only. This means your insurance company will only cover any damages to the other vehicle. One hefty bill and one unhappy Dad.
7. I can park my car on the road without insurance
Only if you declare your card off the road. This rule is called ‘continuous insurance enforcement’. Should you wish to take a break from driving, you must contact the DVLA via a Statutory Off-Road Notification or SORN.
Failure to notify the DVLA could result in: a fixed penalty of £100, your vehicle wheel-clamped, impounded or destroyed or face a court prosecution, with a possible maximum fine of £1,000. You can issue a SORN on the DVLA website and you will get a refund of any remaining tax.
8. You can insure your car in your Parent’s name for a cheaper policy
Your first insurance policy is most likely to be your most expensive, so it is tempting to insure your car in a Parent’s name then add yourself as a named driver.
This widely believed myth is called ‘fronting’ and is against the law. Fronting invalidates your insurance agreement. So, if you do find yourself in an accident, you could be left without cover.
9. Insurance quotes are cheaper on weekdays
Excellent, the first myth that holds some weight and it may save you some money!
Insurance prices go up and down from hour to hour depending on market fluctuations; this is purely linked to supply and demand. Insurance quotes are more expensive at weekends due to insurers being inundated with requests. The same logic applies to time of year. December is the most expensive month for car insurance, perhaps linked to Christmas and poor weather conditions.
Be savvy, don’t go for the first quote and keep an eye on price fluctuations.
10. If I transfer my policy to another insurer, I will lose my No Claims Bonus
Good news! Your No Claims Bonus can be transferred to another supplier. There is a time limit however so make sure you act fast. You need to file your No Claims Bonus within 90 days of your old policies expiry date.
11. Your job title doesn’t affect your policy
Great news for office workers, bad news for decorators. Your job title is one of many factors used to determine the cost of your quote. Sedentary workers are more likely to have a cheaper quote than decorators and labourers. Whilst this may seem a little unfair, don’t be tempted to embellish the truth when declaring your job title.
Be honest and upfront with your insurance provider. Declaring the wrong job title can invalidate your policy.
12. Lower mileage means a cheaper premium
Some providers will charge more for lower mileage, those who drive less than average could be seen as less confident behind the wheel and more accident prone.
So, if you’re a weekend driver expecting a lower premium, perhaps consider ‘pay as you drive’ insurance.
At Call Wiser, we work with leading insurers throughout the UK and work with them to compare insurance quotes and find you the best deal. Our dedicated team are on hand to help you get the cover you need, at a price that suits your budget.