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Eight car insurance myths debunked

Kit Klarenberg
Written By:
Kit Klarenberg
Posted:
Updated:
09/06/2015

Motorists often fail to check the small print on their insurance policies until they need to make a claim. As such, many are shocked to learn what they are and aren’t covered for – and how an incorrect assumption, or a fib told when taking out a policy to lower charges, could mean big costs.

Here, are some of the most popular car insurance myths, courtesy of insurer Policy Expert, and the reality they belie:

  • Theft

Most drivers assume that if pricey personal possessions are stolen from their car while the vehicle is parked, they will be fully covered for the loss. However, most insurance policies have strict limits on how much can be claimed for – and such limits are often very low (around £150). This is why it’s vital not to leave any valuables unattended in a car.

  • Company Cars

Some drivers believe that if they receive points as a result of driving any vehicle other than their own, primary vehicle, it won’t impact their policy – and they do not have to inform their insurer. In reality, not doing so can not only invalidate their policy, but could lead to a conviction for fraud.

  • MOT

Some insurers will only insure vehicles that have a valid MOT – others will only insure vehicles that are judged roadworthy. This is an important distinction, because insuring a car without a valid MOT can invalidate a policy. It is important for drivers to establish which classification their insurer adheres to.

  • Broken Windows

Many drivers opt to pay for the replacement and repair of broken windows and windscreens themselves, in the mistaken belief that claiming for the cost will impact their ‘no claims’ bonus. The reverse is true – but claimants will still have to pay the excess.

  • Shared Journeys

A common car insurance myth is that if a driver recoups petrol costs from passengers on a regular shared journey (whether a school run, or drive to work), this will invalidate their policy. This isn’t true, although if a driver is profiting from this arrangement it could affect their cover.

  • Waived Excess

If you’re involved in an accident that isn’t your fault, a driver will still have to pay the excess for any claim they submit to their insurer. This will generally be returned to the claimant by the party that caused the accident directly, or via their insurer. This is why it’s important to get a driver’s insurance details in the event of an accident.

  • Insurance Name

Some motorists try to save money by taking out a policy in someone else’s name, and listing themselves as a named driver. Newer drivers who wish to avoid the sizeable fees can be tempted to list a parent or sibling; some people list their partner.  This is known as ‘fronting’ and is well-known to insurers. Even if the ploy successfully secures a policy, if the insurance company finds out it can invalidate the policy – and the driver could face criminal charges.

  • Doubling Up

Some drivers can be tempted to ‘double up’ on their insurance – enlisting different providers if their needs cannot be met by one. For example, some drivers may wish to list their offspring as named drivers but cannot as their son or daughter do not meet the minimum age requirements of their insurer, so seek coverage elsewhere. However, this approach can complicate the claims process, with individual insurers arguing over which provider’s responsibility it is for dealing with a claim.

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