Drivers throughout the UK are being urged to be cautious when looking for 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 decreasing premiums. To assist drivers make knowledgeable selections, consultants at Vertu Motors have debunked among the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Mother or father because the Predominant Driver Lowers Prices
New drivers usually face excessive insurance coverage premiums, prompting some to record their mother and father as the principle driver in an try to chop prices. Nonetheless, this observe—often called “fronting”—is illegitimate and will result in severe penalties, together with a positive of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As an alternative, younger drivers ought to contemplate including an skilled driver to their coverage as a named driver, supplied they don’t seem to be falsely declared as the first driver. This method might assist decrease prices with out breaking the legislation.
MYTH: Rural Areas All the time Imply Cheaper Insurance coverage
It’s generally believed that dwelling in a rural space routinely ends in decrease automotive insurance coverage premiums. Whereas insurers do take crime charges and accident statistics under consideration, this isn’t a assure.
Sure rural areas may very well have larger insurance coverage prices resulting from components reminiscent of elevated accident charges, poorly maintained roads, and dangers reminiscent of wildlife-related collisions. Drivers are suggested to offer probably the most correct deal with the place their automotive is based, guaranteeing it matches official data reminiscent of voter registration.
MYTH: Staying with the Similar Insurer is the Least expensive Possibility
Loyalty doesn’t at all times pay with regards to automotive insurance coverage. Many drivers assume that renewing their coverage with the identical supplier will lead to a greater deal, however this isn’t at all times 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, moderately 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 might have had restrictions, fashionable black field techniques primarily monitor driving behaviour, reminiscent of velocity, braking, and cornering.
Moderately than proscribing drivers, these insurance policies can really reward secure motorists with decrease premiums. Those that display accountable driving habits may even see a discount of their insurance coverage prices, whereas riskier drivers might face elevated charges.
Making Knowledgeable Selections
With automotive insurance coverage prices on the rise, it’s extra essential than ever for drivers to separate reality from fiction. By understanding the realities behind these widespread myths, motorists can keep away from expensive 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 selections about their first insurance policies.
You may learn extra tales like this right here
