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The Truth Behind Top Car Insurance Myths

With the latest registration plate recently released, this time of the year is very popular for people who are looking at buying a new car. As a result, car insurance sales will also likely increase around new registration time of year.

When it comes to purchasing car insurance, there are several things that we all think will contribute to getting the lowest quote possible. The problem is that a lot of the common beliefs are not necessarily true.

Here we will look at some of the top car insurance myths, and reveal the truth behind them.

1. The myth: Fully comprehensive is more expensive than third party cover

You may be surprised to find out that a fully comprehensive policy can often be cheaper than third party only cover.

Many people believe that if you take out fully comprehensive insurance, the cost will be greater as the cover level is higher. If you compare car insurance quotes with different cover levels, you will probably seethe fully comprehensive quotes coming out cheaper.

2. The myth: You can drive another persons vehicle as long as your insurance is fully comprehensive

Driving myths - Impounded Car Insurance UK
Many motorists believe that their car insurance will cover them to drive other people’s car if their own insurance policy is fully comprehensive. Although this is quite often true, there are some exceptions.

It is common practise for insurers to extend their cover to allow the policyholder to drive another vehicle, usually under third party cover. However, if you are a young driver or have a certain occupation this may not apply to you.

It is important to check the wording on your policy before driving another person’s car. If you are involved in a collision you may find that you have to pay the repair costs yourself if you are not covered. You are also at risk of being convicted for driving without valid insurance and even having the other person’s car impounded, which can develop into quite a costly mistake.

If you are found to be driving without valid insurance you will also be liable to pay fines and fees if this happened. You would also need to take out a special impounded car insurance policy to retrieve the car from the police compound.

3. The myth: It’s okay to insure your car with somebody else as the main driver to reduce your premium

Young driver - Impounded Car Insurance UK
This is a myth that is most relevant to younger drivers. In efforts to get the cheapest car insurance possible many people will add another person to their policy, such as a parent, and claim that they are the “main driver” of the car. Because the insurance company think that an older and more experienced driver will be using the car most of the time, they often drastically reduce the offered premium.

If you are in fact driving the car most of the time, you are committing an offence by stating that somebody else is the main driver. Naming a lower risk, more experienced driver as the main user is known as “fronting” is a criminal offence and could result in a criminal record.

The risk is, that if you are caught, the insurer may actually void your insurance. This means that you could inadvertently drive your car with an invalid insurance policy, which would result in all kinds of problems such as driving convictions, fines and even the possibility that your vehicle may be seized. To release a seized car you will need to find an insurance company that offer insurance for impounded cars.

4. The myth: Older cars cost less to insure

This myth has some truth behind it but is not always correct. Sometimes older cars cost less to insure because they are not worth as much as newer more modern vehicles.

However, older cars are often more susceptible to theft and are often not as safe as new cars. It can also be difficult to find parts for older cars which can mean they are more expensive to repair.

There is no general rule, though, that states whether newer or older cars are cheaper to insure. Each vehicle is grouped into a category from 1-50 by the Association of British Insurers and this, amongst other factors, determines how much it will cost to insure.

This myth has some truth behind it but is not always correct. Sometimes older cars cost less to insure because they are not worth as much as newer more modern vehicles.

5. The myth: If I’m involved in a collision that isn’t my fault, my premiums won’t be affected

We’d all like to think that if we were involved in an accident, that wasn’t our fault, our car insurance premiums would not rise as a result of the incident.

This may in fact be incorrect, as research has shown that many top insurance companies premiums will in fact increase if you have had a non-fault claim. As unfair as this may seem, insurance companies believe that if you have had a non-fault claim, you are statistically more likely to make an at-fault claim during the length of your policy.

Now you know the truth behind some of the top car insurance myths out there. Impounded Car Insurance UK recommend that you always thoroughly read your insurance documentation so that you know exactly what is and what is not covered by your policy.