Nine costly car insurance myths exposed

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Knowing the facts about car insurance could help you get the best deal

Finding the right car insurance policy can drastically cut the cost of your premiums, but there are a number of misconceptions dogging the car insurance world.

We expose nine of the most common to make sure you’re not paying too much for your policy.

MYTH 1: If an accident wasn’t your fault, you don’t need to tell your insurer

If you’ve been involved in an accident that wasn’t your fault, you may feel your insurer doesn’t need to know about this, but you do need to tell them about any incidents no matter how small.

If something isn’t relevant, your insurance company won’t take it into account when calculating your premiums, but, if you fail to declare relevant details, your insurer could refuse pay out in the event you need to make a claim.

MYTH 2: You’re guaranteed a courtesy car if you have an accident

Depending on your level of cover, you may be provided with a courtesy car, but this isn’t guaranteed if your car is stolen or written off. With this in mind, you should always check what comes as standard with your chosen policy and, if you rely on your car, you may wish to add a hire car as an add-on when taking out your policy.

MYTH 3: Red cars cost more to insure

The insurance business is colour blind and there isn’t any statistical evidence that driving a red (or any colour) car will leave you with a higher bill.

We’ll take various factors into account when calculating your premiums such as your driving record and the age, make and model of your car. We’ll also look at your postcode and where your car is stored overnight, but the colour won’t make a difference at all to your insurance costs.

MYTH 4: Telematics means “Big Brother”

There is a preconception that ‘black box’ insurance exists to hike up premiums by picking up on every minor transgression. This isn’t the case. Our products reward good drivers, rather than penalising every little mistake you make on the roads.

Getting a thorough picture of your driving habits allows us to get a better understanding of how you drive so we can reward your sensible habits. We’ll also send you regular feedback on how you're driving, with tips to help you drive safely.

The information collected by the box during your policy can help you get a lower insurance price at renewal if we find you to be a safe driver, 80% of people using LittleBox get a discounted price at renewal.

Our black box mythbuster guide answers any other telematics questions you may have.

MYTH 5: Adding a parent to my policy is the best way to cut costs

For decades, younger drivers, new licence in hand, have been adding a parent’s name to their policies in an attempt to lower premiums. While it’s true that insurance companies will be reassured to know that a driver with a clean record will occasionally be in control of the car, it’s essential you’re honest when applying for a policy.

Falsely naming another person as the main driver of your car is known as ‘fronting’, which is a type of fraud and could invalidate your policy. If the offence is exposed, your insurer may invalidate the policy and, in extreme cases, you could be at risk of a criminal prosecution.

MYTH 6: If I claim on a MultiCar or MultiCover policy everyone loses their No Claims Bonus

Each policyholder earns their own No Claims Bonus and having an accident won’t affect the other policyholders.

For example, if you and your partner each have a car on a MultiCar policy and one of you claims, the other’s No Claims Bonus remains intact. Likewise, if you have a MultiCover policy for your home and car, a home insurance claim won’t affect the No Claims Bonus on your car.

MYTH 7: If I have comprehensive cover, I can drive anyone’s car

While it’s true your insurance policy may offer you third party cover to drive another vehicle, it’s certainly not guaranteed. Many factors can influence whether your policy will allow you to drive another person’s vehicle.

You can check this on your Certificate of Motor Insurance but remember, this is only meant to be used in an emergency. If you regularly drive another vehicle, you should consider being added as a named driver.

Our guide to whose car you can drive has all the information you need.

MYTH 8: Third party policies are always the cheapest

If you take out a third party policy, you’ll be covered if you damage someone else's property or injure them while driving your car. This type of cover also protects your passengers if they are hurt while in your car.

But opting for the lowest level of cover doesn’t always guarantee the cheapest premiums. If you’re looking for the most competitive deal, it could be a good idea to run quotes for all levels of cover based on your personal circumstances

MYTH 9: I can’t get car insurance if I have a driving conviction

Having a serious conviction, such as drink driving won’t necessarily prevent you from getting insurance. You may need to pay more for your insurance, but most companies will consider insuring almost any driver.

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