Are your assumptions about car insurance costing you money or putting your coverage at risk? Let’s set the record straight on some common misconceptions.
Lower mileage means cheaper insurance
While it's tempting to think fewer miles means lower premiums, that's not always true. In some cases, low-mileage drivers might pay more, as insurers sometimes see them as less experienced and therefore more accident-prone. Accuracy matters when reporting your annual mileage, so check your records to get it right. If you drive under 6,000 miles annually, explore options like low mileage or pay-as-you-go insurance.
Parking your car in a garage
Contrary to popular belief, parking in a garage may not significantly affect your premium compared to parking on your driveway. In some cases, it might even be pricier due to the increased risk of accidents when manoeuvring in and out of garages.
Comprehensive cover allows you to drive any car
Being fully covered in your own car doesn’t automatically extend to driving others' vehicles. Even if you have comprehensive coverage, it's crucial to check if it includes Driving Other Cars (DOC) cover. Remember, this usually only provides third-party liability, and permission from the car's owner is a must. Also, be aware that insurers often exclude this for drivers under 25.
Listing a parent on your policy lowers your premium
Putting an older or more experienced driver as the main driver to cut costs is illegal and known as 'fronting.' It not only invalidates your policy but can lead to hefty fines and future insurance difficulties. Adding a parent as a secondary driver, however, is legal and might help reduce premiums.
Failing to report non-fault accidents
Even if you weren't at fault, failing to report an accident to your insurer can lead to policy cancellation or refusal to pay out later. While reporting a non-fault accident shouldn't affect your no-claims discount, it could influence your premium at renewal.
Third-party policies are cheaper
Contrary to expectations, opting for third-party insurance isn’t always the cheapest option. Comprehensive cover can sometimes cost the same or less and offers added benefits like coverage for your own vehicle. To find the best deal, consider getting quotes for all coverage levels.
Your job title isn’t important
Your occupation plays a significant role in determining your premium, with subtle differences in job titles affecting costs. For instance, a restaurant manager might pay more than a café owner. While tweaking your job title could lower premiums, misrepresenting your occupation risks claim rejection in the future.
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