26 Oct

Top 5 car insurance myths

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Insurance guides

There are some 20 million car insurance policies bought in the UK every year. But even though so many of us buy car insurance, do you really know all the ins and outs? There’s plenty of misinformation out there about what policies do and don’t cover and these are some of the most common car insurance myths around.

 

All short-term insurance policies are the same

There are a number of providers in the short term (a.k.a temporary) car insurance market. But just because you can buy a policy for as little as an hour, does not mean that there is no difference between them. Some providers have far wider acceptance criteria than others, so check what limitations are in place. GoShorty, for example, covers those aged from 18 to 75 and cover is available from one hour up to 28 days.

 

Fully comprehensive means you can drive any car

In the past it was commonly held that it if you held comprehensive insurance, you could drive any car. This clause was intended only for emergency use, but policies could also specify that it did not apply to those aged under 25 and those above this age, would only benefit from third party protection – there could also be exclusions dependent on occupation. Many policies will specify that driving other cars is not included or only a named driver is able to drive the car.

 

Third-party cover is always going to be the cheapest option

Third party – or third party, fire and theft is a more limited form of insurance, since it does not cover the driver’s vehicle. But, experience has shown insurers that these policies tended to be purchased by younger drivers and those who were more likely to be involved in riskier practices. As such, there were more claims and drivers may well find now that comprehensive insurance is more competitive, and of course, provides better value.

 

Paying monthly is the same as paying upfront

Most insurers charge more if you pay monthly – and the annual percentage rates (APRs) added onto policies can be significant. These can be as high as 39%, which shows just how much extra will be added onto the figure quoted for the upfront price. In a majority of cases, if you can pay for the policy in a single lump sum you will make a considerable saving. If you only need use of a car relatively infrequently, and you have a vehicle you can borrow, it could also be much cheaper to insure this via a short-term policy from GoShorty.

There’s no need to report minor prangs to an insurer

If there’s a small car park scrape and you don’t plan to make a claim, then most would believe there is no need to let their insurer know. But, the official line is that most insurers state they do want to know about any accidents for two reasons. Firstly, if another car is involved, then the driver of this vehicle may choose to make their own claim for damage. The insurer will want to know what the full story is in this case to see who was at fault. Secondly, the insurer holds a record of what the car is believed to be worth and even minor damage can impact on the value.

 

Get a quote today from GoShorty, and see how much you could save compared to a yearly policy