Drivers throughout the UK are being urged to be cautious when trying to find cheaper automotive insurance coverage, as frequent misconceptions might result in sudden fines and even authorized bother.
Current knowledge from Vertu Motors has revealed a staggering 173% improve 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 decisions, consultants at Vertu Motors have debunked a number of the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Guardian because the Major Driver Lowers Prices
New drivers typically face excessive insurance coverage premiums, prompting some to record their dad and mom as the principle driver in an try to chop prices. Nonetheless, this observe—referred to as “fronting”—is prohibited and will result in severe penalties, together with a superb of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As a substitute, younger drivers ought to think about 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 strategy might assist decrease prices with out breaking the regulation.
MYTH: Rural Areas All the time Imply Cheaper Insurance coverage
It’s generally believed that dwelling in a rural space routinely 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 increased insurance coverage prices as a consequence of elements reminiscent of elevated accident charges, poorly maintained roads, and dangers reminiscent of wildlife-related collisions. Drivers are suggested to offer essentially the most correct handle the place their automotive is based, making certain it matches official information reminiscent of voter registration.
MYTH: Staying with the Identical Insurer is the Least expensive Possibility
Loyalty doesn’t all the time pay in terms of 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 check choices every year to make sure they’re getting the absolute best deal, somewhat than assuming their present supplier is essentially 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, trendy black field programs primarily monitor driving behaviour, reminiscent of velocity, braking, and cornering.
Reasonably than limiting drivers, these insurance policies can truly reward protected motorists with decrease premiums. Those that exhibit accountable driving habits might even see a discount of their insurance coverage prices, whereas riskier drivers might face elevated charges.
Making Knowledgeable Choices
With automotive insurance coverage prices on the rise, it’s extra necessary than ever for drivers to separate reality from fiction. By understanding the realities behind these frequent 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 help them keep away from pitfalls and make knowledgeable choices about their first insurance policies.
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