It now costs an estimated £3500 per annum to own and operate a vehicle in the UK, with the price of annual insurance premiums particularly prohibitive. While it easy to suggest that some insurers charge over the odds for insurance coverage, however, a more balanced observation is that consumers simply lack the knowledge and experience to seek out viable financial savings. At the heart of this confusion is a number of myths and misconceptions concerning car insurance, which often mislead consumers and force them to make decisions that ultimately end up costing them.
The 3 Most Costly Car Insurance Myths
With this in mind, what are the 3 most costly car insurance myths that you should be wary of as a consumer? Consider the following:
- You Can Save Money by Adding another Driver’s Name and Being a Named Driver: This is perhaps the oldest of all car insurance myths, and it works on a legal loop-hole that enables motorists to operate a vehicle without being the primary driver. While this is a sound principle, however, it ignores the fact that insurers are well aware of this scheme are now ask drivers to list the number of vehicles registered to their property and whether or not they are main driver. Answering these direct questions falsely is akin to making a fraudulent claim, which can prove far more costly than the cost of annual insurance.
- You Can Claim for the Full Cost of Any Items Stolen if your Car is broken Into: While this is a nice thought, even reputable national insurers like AXA Insurance would struggle to repay the cost of such extravagant claims. In fact, the majority of insurance providers have an upper limit for the amount that they are prepared to pay in the event of a break-in, which typically rests between the £100 and £150 mark depending on your precise policy. Although this does not include the in-built stereo, it is a relatively small amount that should encourage you to remove all expensive accessories and goods from your vehicle.
- You Won’t have to Pay an Excess if an Accident is Not Your Fault: This misconception revolves around a misunderstanding of the term ‘excess’, which in the field of insurance relates to an agreement with the insurer that stipulates the amount that you are required to pay when you make a claim. This is broad and unflinching agreement which is set in place when the policy is agreed, and even in the event of an accident that is not your fault you may only get your excess repaid if the insurer receives full remuneration from the their party or their representative. While this may seem a little unfair, it is clearly laid out in the terms and conditions of your policy, so read them thoroughly before making a commitment.