Drivers throughout the UK are being urged to be cautious when looking for cheaper automobile insurance coverage, as widespread misconceptions might result in surprising fines and even authorized bother.
Current knowledge from Vertu Motors has revealed a staggering 173% enhance in Google searches for ‘low-cost automobile insurance coverage quotes on-line’ during the last three months. Nevertheless, many motorists could also be unknowingly placing themselves in danger by falling for myths about lowering premiums. To assist drivers make knowledgeable selections, consultants at Vertu Motors have debunked a few of the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Mum or dad because the Predominant Driver Lowers Prices
New drivers typically face excessive insurance coverage premiums, prompting some to listing their dad and mom as the principle driver in an try to chop prices. Nevertheless, this observe—often called “fronting”—is prohibited and will result in severe penalties, together with a wonderful of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As an alternative, younger drivers ought to take into account including an skilled driver to their coverage as a named driver, offered they don’t seem to be falsely declared as the first driver. This strategy might assist decrease prices with out breaking the regulation.
MYTH: Rural Areas At all times Imply Cheaper Insurance coverage
It’s generally believed that dwelling in a rural space robotically leads to decrease automobile insurance coverage premiums. Whereas insurers do take crime charges and accident statistics into consideration, this isn’t a assure.
Sure rural areas may very well have larger insurance coverage prices resulting from components resembling elevated accident charges, poorly maintained roads, and dangers resembling wildlife-related collisions. Drivers are suggested to offer essentially the most correct tackle the place their automobile is based, guaranteeing it matches official data resembling voter registration.
MYTH: Staying with the Identical Insurer is the Most cost-effective Possibility
Loyalty doesn’t all the time pay on the subject of automobile insurance coverage. Many drivers assume that renewing their coverage with the identical supplier will end in a greater deal, however this isn’t all the time the case.
Since January 2022, the Monetary Conduct Authority (FCA) has banned insurers from charging current clients greater than new clients for a similar coverage. Nevertheless, it stays important for drivers to match choices every year to make sure they’re getting the absolute best deal, moderately than assuming their present supplier is essentially the most cost-effective alternative.
MYTH: Black Field Insurance coverage is Too Restrictive
Telematics, or “black field” insurance coverage, has been topic to many misconceptions, with some drivers believing it imposes strict curfews or limitations. Whereas early variations of telematics insurance policies might have had restrictions, trendy black field programs primarily monitor driving behaviour, resembling velocity, braking, and cornering.
Relatively than limiting drivers, these insurance policies can really reward protected motorists with decrease premiums. Those that reveal accountable driving habits may even see a discount of their insurance coverage prices, whereas riskier drivers might face elevated charges.
Making Knowledgeable Choices
With automobile insurance coverage prices on the rise, it’s extra essential than ever for drivers to separate truth from fiction. By understanding the realities behind these widespread myths, motorists can keep away from pricey errors and guarantee they’re choosing the proper coverage for his or her wants.
For ADIs advising new drivers, educating learners on authorized and cost-effective insurance coverage selections may help them keep away from pitfalls and make knowledgeable choices about their first insurance policies.
You possibly can learn extra tales like this right here
