Drivers throughout the UK are being urged to be cautious when looking for cheaper automobile insurance coverage, as widespread misconceptions may result in surprising fines and even authorized hassle.
Current knowledge from Vertu Motors has revealed a staggering 173% improve in Google searches for ‘low-cost automobile insurance coverage quotes on-line’ over the past three months. Nonetheless, many motorists could also be unknowingly placing themselves in danger by falling for myths about decreasing premiums. To assist drivers make knowledgeable selections, consultants at Vertu Motors have debunked a number of the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Guardian because the Foremost Driver Lowers Prices
New drivers typically face excessive insurance coverage premiums, prompting some to record their dad and mom as the primary driver in an try to chop prices. Nonetheless, this apply—often known as “fronting”—is illegitimate and will result in critical penalties, together with a wonderful of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As a substitute, younger drivers ought to think about including an skilled driver to their coverage as a named driver, offered they aren’t falsely declared as the first driver. This method might assist decrease prices with out breaking the legislation.
MYTH: Rural Areas At all times Imply Cheaper Insurance coverage
It’s generally believed that residing in a rural space routinely ends in decrease automobile insurance coverage premiums. Whereas insurers do take crime charges and accident statistics under consideration, this isn’t a assure.
Sure rural places may very well have greater insurance coverage prices on account of elements corresponding to elevated accident charges, poorly maintained roads, and dangers corresponding to wildlife-related collisions. Drivers are suggested to offer probably the most correct tackle the place their automobile is based, guaranteeing it matches official data corresponding to voter registration.
MYTH: Staying with the Identical Insurer is the Most cost-effective Possibility
Loyalty doesn’t all the time pay relating to automobile insurance coverage. Many drivers assume that renewing their coverage with the identical supplier will end in a greater deal, however this isn’t all the time the case.
Since January 2022, the Monetary Conduct Authority (FCA) has banned insurers from charging present clients greater than new clients for a similar coverage. Nonetheless, it stays important for drivers to match choices annually to make sure they’re getting the absolute best deal, moderately than assuming their present supplier is probably the most cost-effective selection.
MYTH: Black Field Insurance coverage is Too Restrictive
Telematics, or “black field” insurance coverage, has been topic to many misconceptions, with some drivers believing it imposes strict curfews or limitations. Whereas early variations of telematics insurance policies might have had restrictions, fashionable black field programs primarily monitor driving behaviour, corresponding to velocity, braking, and cornering.
Moderately than limiting drivers, these insurance policies can really reward protected motorists with decrease premiums. Those that display accountable driving habits may even see a discount of their insurance coverage prices, whereas riskier drivers might face elevated charges.
Making Knowledgeable Choices
With automobile insurance coverage prices on the rise, it’s extra vital than ever for drivers to separate reality from fiction. By understanding the realities behind these widespread myths, motorists can keep away from pricey errors and guarantee they’re selecting the best coverage for his or her wants.
For ADIs advising new drivers, educating learners on authorized and cost-effective insurance coverage selections may also help them keep away from pitfalls and make knowledgeable selections about their first insurance policies.
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