February 2021

The number one money-saving tip for insurance recommended on all the comparison websites is - Do a comparison before you buy!

Most policies will automatically renew the following year which usually means increased premiums, unless we expressly state that we want to cancel or change. Apathy costs us money!

When it comes to your car insurance there are a many myths that may be getting in the way of finding the best deal - or even a deal that’s going to cover you for your real needs.

Here are 7 of the most common myths.

1) Comprehensive cover means you can drive any car

Some fully comprehensive policies do indeed insure you to drive other cars, but only if it’s explicitly stated. It’s not an automatic term in this type of policy and varies from insurer to insurer, but look out for ‘Driving Other Cars’ in your policy wording.

2) Even if your insurance does extend to other cars, usually you’ll only be covered for third party damage.

Third party policies are cheapest

This sounds logical and is often the case, but not always. The assumption may be that drivers with lower cover policies tend to make more claims, which increases the risk and thus the premiums. Try searching comparison sites for all levels of cover so you can make a proper comparison.

Remember that third party insurance means you’re not covered for damage to your own car, regardless of whether another party is involved in the accident.

3) Your job title makes no difference

The job title you give for your insurance quote is more than an administrative technicality. Some jobs are deemed to be higher risk than others and this can affect your quote. Honesty is the best policy, and as long as your job title accurately covers your job description you’ll be fine, but it may be worth playing around with different wordings to see if it makes a difference.

4) Keeping your car in the garage is safer and therefore reduces your premium

Have you tried to get a modern car in a standard 1970's garage before? It may be safer from kerbside prangs, but your risk of dinging it on the way in or out is hugely increased. This assumption is one reason why it may result in a more expensive policy. Again, be honest about where you keep your car but don’t assume that ‘in the garage’ is always going to lead to a lower premium.

5) Lower mileage means lower premiums

As with many of these myths the truth is that it might, but doesn't always. Drivers who cover more miles annually have more time behind the wheel and arguably could be more skilled and experienced drivers. A low-mileage driver may be more nervous and thus more likely to have an accident, which could lead to higher premiums.

6) Claims that weren’t your fault don’t affect your premiums

In most cases if an accident wasn’t your fault, such as a kerbside prang because you didn’t squeeze your car into the garage, it won’t affect your premium. But you still need to tell your insurance provider about it. If you fail to do so and they discover it later on, they could cancel your policy or refuse to pay out in the event that you needed to make a claim.

7) Putting the policy in your parent’s name lowers the premium

This one actually is true. Putting your car insurance in the name of a more experienced driver whilst you are down as an additional driver is likely to lower the premium. Unfortunately it’s also illegal! The practice is called ‘fronting’, and it’s a loophole that’s been closed for many years now, with fines of up to £5000 and the likelihood that you’ll find it harder to get insurance in the future.

Putting a parent on a policy as an additional driver may well reduce the premium and is fully within the law, just don’t be tempted to put them on as the main driver!