Car insurance myths debunked


Nowadays, you can apply for any sort of insurance policy online, whether it is insurance cover for luxury homes or car insurance. Because of this, though, there has been a lot of misinformation posted online. In this blog post, we aim to separate the facts from the fiction. Read on for some of the most common car insurance myths.

You do not need to insure a broken-down car – A lot of people do not think that they need to insure a car that is written off or has broken down. However, unless this vehicle has been declared as being off the road, you are going to need to insure it. You can use a Statutory Off-Road Notice (SORN) if you want to make sure the government is aware that a vehicle is not in use. Therefore, if you are not going to be using a vehicle and don’t intend to insure it, you absolutely need to make sure you submit a SORN.

The colour of your car makes a difference – There is a very common myth that a red vehicle is going to be more expensive to insure. Black is another colour that is deemed to be more costly. A lot of people then end up avoiding cars in these colours because they fear that they are then going to have more expensive insurance premiums. In fact, there is no evidence whatsoever to indicate that there are any links between the colour of a car and the insurance premiums.

Your job title does not impact your car insurance – A lot of people assume that when they enter their occupation this is purely for administrative purposes. In fact, it can actually have an influence on the cost of your insurance policy. It all comes down to how your job title is worded. Subtle changes can have an impact on your premiums. For example, Money Wise discovered that a restauranteur was charged £93 more per year than a cafe owner was. You may think that this is unfair, but investigations have shown that it can happen, and so it is definitely worth seeing how this impacts your insurance quotes when you are assessing your options.

You can lower insurance costs by putting your policy into your parent’s name – It is thought that this is a common hack for lowering insurance costs. If you are a younger driver, your costs are going to be more expensive when it comes to more experienced drivers. Because of this, you may think that it is a good idea to put down your parent as the main driver so you can lower the cost of insurance. This is not recommended. Why? Well, first and foremost, it is actually illegal. You could end up being stung with a fine of £5,000, and then your insurance certainly isn’t going to feel cheap then! Plus, it can make it very difficult for you to secure car insurance in the future. You can add your parent as a secondary driver. This is something that is legal to do. It may reduce your premiums slightly. However, make sure you do not put a parent down as the main driver.

You will get cheaper insurance if you have low mileage – A lot of customers will think that if they drive a lower number of miles, they are going to be able to reduce their insurance premium. However, this is not always the case. After all, if you do not drive a lot, your potential insurance provider may assume that you have less experience and confidence behind the wheel. Therefore, they may deduce that you are going to be more likely to be involved in an accident. This is something that is going to vary from provider to provider. This is why it is important to look into how mileage can impact the cost.

You can reduce insurance costs by parking your vehicle in your garage – This is an extremely common misconception. A lot of people think that their insurance premiums are going to be cheaper if they park their car in their garage, rather than parking it in their driveway. Nevertheless, the difference in this can be very minimal, and in some cases, there is no difference at all. This is because of the fact that insurers may consider that there is more chance of you damaging your vehicle when trying to get it in and out of the garage.

Old cars are cheaper to insure – Another myth is that old cars are cheaper to insure than new cars. Older vehicles can sometimes be cheaper because their value is usually lower. Nevertheless, the lack of modern features can mean that they are easier to break into, and because of this, this can result in insurance being more expensive. This is why it is always better to assess your options when looking for the best policy for you.

It’s cheaper to stay with your existing insurer – Last but not least, another common myth that we see a lot of is that it is cheaper to stay with your current insurer. A lot of people believe that they will get a loyalty discount and that this is going to be cheaper than anything they will be offered elsewhere. Nevertheless, this is not often the case. Not all companies reward their customers for their loyalty, even though they should! In fact, one of the biggest ways that people over-pay for their vehicle insurance is by auto-renewing. You can make some excellent savings by comparing different deals and shopping around. If you do wish to stay with your current insurer, the best thing to do is to call them and explain that you’re thinking about moving. You may then find that they offer you a better deal.

As you can see, there are a number of different myths that have become prevalent when it comes to car insurance. However, we hope that this post has helped you to understand the facts from the fiction.

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