7 Costly Car Insurance Myths to Avoid in the UK

Choosing a car insurance policy with the best deal in the United Kingdom (UK) is no walk in the park. With lots of things to consider, misunderstandings are bound to happen. They may seem harmless initially, but they can be easily overlooked and become costly mistakes.

These widely-held beliefs on car insurance may also hamper your search for the best deals or even invalidate your policy in the UK. To help you be more aware of misconceptions, we’ve debunked seven among many car insurance myths you should avoid.

No Need to Get Insured If You Don’t Drive Often

In the UK, driving uninsured is illegal whether you drive usually or rarely. If you think paying for premiums despite driving less is a waste of money, consider getting a usage-based or insurance policy to get affordable coverage based on how often you drive.

Remember, uninsured drivers must face a £300 fine and six penalty points, or, worse, an unlimited fine and driving disqualification if the case goes to court.

Minimum Coverage is Enough

While third-party insurance is the UK’s legal minimum, it doesn’t always guarantee 100% financial protection. Understanding your needs and driving behaviour is necessary to avoid getting underinsured or purchasing the wrong insurance.

It doesn’t hurt to reach a professional if you’re confused about which insurance policy to purchase due to varied car insurance coverage. If talking isn’t your strong suit, many insurance websites can lend you a hand 24/7. Check Assurance auto insurance as an example. Its sites specifically help you to find a policy that suits your unique needs.

In A Car Theft, Valuable Contents in A Car Are Covered

Claiming for expensive possessions left in a car if your car is stolen isn’t always possible. It depends on your car policy. In most cases, only part of the cost is eligible to claim. This is why avoiding leaving any valuable item in a car unattended is strongly encouraged. More importantly, carefully read and understand your car insurance policy to know what you’re protected against.

Keep Cars in The Garage to Lower Insurance Costs

Parking a car in a garage is usually better than parking it on the driveway or street. Doing so protects it from potential damage caused by the weather, theft, or collision. Since parking in the garage prevents any damage and makes insurers less likely to spend on your car, many insurance companies usually charge lower rates on full-coverage policies.

Still, it all depends, usually on your area. It isn’t a one-size-fits-all solution to getting cheaper insurance. Note that claims data is one of the deciding factors for the insurance rates. That means if you currently reside in an area with many garage-related accidents, keeping your car in a garage can increase your premium.

Another example is if you’re living in a humid area. In these places, garages become very damp due to humid weather. High humidity isn’t good for most metal parts of a car, causing it to become rusty and corrode. Keeping your car in this humid garage will only increase your monthly premium.

Coloured Cars Are Costlier to Insure

Many motorists in the UK, even in other countries, believe that specific car colours can raise the price of one’s insurance premium.

For example, rarer car colours, such as red and yellow, are more expensive to insure due to their higher repair costs. They’re often considered “risky” by many insurers and therefore attract a higher premium. However, a car colour impacting car rates is just a myth with no conclusive evidence. Premiums are mainly calculated based on the motorist’s age, driving behaviour, and previous claims history.

The car’s model, age, and mileage also matter, not its colour. That’s why when purchasing a car, don’t believe there’s a colour that can give you cheaper insurance. Instead, opt for the car colour you like and be a good driver.

Young Drivers Should Get Insured Under Their Parents’ Names

Adding experienced drivers like your parents as “named” drivers on your policy can help lower insurance premiums if you’re a new or young driver. Having more experienced drivers have access to your car and may drive it occasionally reduces your overall risk in the eyes of your insurer.

However, using them as “main” drivers to lower your premium costs more is illegal. This is called “fronting.” Its consequences are as serious as driving without car insurance. These include a hefty fine, penalty points, policy invalidation, and licence disqualification. Additionally, it’ll be harder for you to purchase another car insurance in the future.

Credit scores Don’t Impact Insurance Premium

In the UK, it’s not common for insurance companies to factor a motorist’s credit history into their likelihood of making a claim. However, statistics suggest that insurance claimants usually have a poor credit history.

As a result, those who tend to miss their loan payments are seen by many insurers as prone to more risky behaviours.

The question is: does credit score impact insurance premiums? The answer is yes, especially if you wish to pay car insurance in monthly instalments. An insurance company must run a hard check on your credit to see your financial history and better understand your debt management. In these cases, maintaining a stellar credit score is a great idea.

Final Thoughts

As the motorist, determining what your individual policy should exactly cover is your responsibility. Otherwise, you’ll have to face hefty personal liability, repair costs, and legal costs in the event of an accident.