Drivers throughout the UK are being urged to be cautious when trying to find cheaper automotive insurance coverage, as widespread misconceptions may result in sudden fines and even authorized bother.
Latest information from Vertu Motors has revealed a staggering 173% enhance in Google searches for ‘low-cost automotive insurance coverage quotes on-line’ during the last three months. Nonetheless, many motorists could also be unknowingly placing themselves in danger by falling for myths about lowering premiums. To assist drivers make knowledgeable decisions, specialists at Vertu Motors have debunked among the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Father or mother because the Foremost Driver Lowers Prices
New drivers usually face excessive insurance coverage premiums, prompting some to checklist their dad and mom as the principle driver in an try to chop prices. Nonetheless, this follow—often known as “fronting”—is prohibited and will result in critical penalties, together with a advantageous of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As an alternative, younger drivers ought to think about 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 method could assist decrease prices with out breaking the legislation.
MYTH: Rural Areas At all times Imply Cheaper Insurance coverage
It’s generally believed that residing in a rural space mechanically leads to decrease automotive 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 as a consequence of elements similar to elevated accident charges, poorly maintained roads, and dangers similar to wildlife-related collisions. Drivers are suggested to offer probably the most correct handle the place their automotive is based, making certain it matches official data similar to voter registration.
MYTH: Staying with the Identical Insurer is the Least expensive Possibility
Loyalty doesn’t all the time pay in relation to automotive 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 present prospects greater than new prospects for a similar coverage. Nonetheless, it stays important for drivers to match choices every year to make sure they’re getting the very best deal, quite than assuming their present supplier is probably the most cost-effective selection.
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 could have had restrictions, fashionable black field programs primarily monitor driving behaviour, similar to pace, braking, and cornering.
Moderately than limiting drivers, these insurance policies can really reward secure motorists with decrease premiums. Those that reveal accountable driving habits might even see a discount of their insurance coverage prices, whereas riskier drivers could face elevated charges.
Making Knowledgeable Selections
With automotive 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 decisions may also help them keep away from pitfalls and make knowledgeable selections about their first insurance policies.
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