The world of car insurance can be a tricky one to get your head around, with so many different companies offering different policies. There are, however, a number of myths that people are often caught out by, which we have taken a look at below:“If I take out fully comprehensive insurance, I am automatically covered on any car I drive with the permission of the owner”
Perhaps the most common myth out there is that fully comp insurance covers you in any car, as long as the owner of the car give their permission. Most policies will only provide this benefit in certain circumstances, whilst many do not offer it at all. Even in situations where the cover does exist, it only applies third party, so if you are involved in an accident in someone else’s car, you could be liable for your own damage.“Charging petrol money for giving my colleague a lift to work could invalidate my insurance”
So long as you are not making a profit from providing a lift for your colleagues, your insurance should be perfectly valid as long as you are covered for commuting. Most policies have social, domestic and pleasure use, whilst some include commuting. If this is all you have, you cannot use your car in conjunction with your job, such as going to appointments. You will require extra cover if you are going to be using your car in those situations.“Claiming for a smashed windscreen will cause me to lose my no claims bonus”
If you are only claiming for a smashed windscreen and no other damage, your no claims bonus should stay intact. You will have to pay an excess for the damage, which will be stated in your insurance documentation.“If I put my insurance in the name of a more experienced driver and put myself as a named driver, I can save money”
Insurers have wised up to this idea, known as fronting, and will now ask how many cars are in each house and who is the main driver of the said cars. If you are found to be dishonest, chances are you will make your insurance invalid.“I won’t have to pay an excess if an accident is not my fault, or my car was stolen”
An excess is a set agreement you have made with the insurance company when your policy is purchased, and is the first part of any claim cost that you, the policyholder, agrees to pay if a claim is made. If an accident is not your fault, you may only get your excess back if your insurance company gets all of the money back from the third party, or the company they are insured with.“If my car is broken into, I can claim for the full cost of any personal effects that were stolen”
As frustrating as it is, most insurance companies will have an upper limit for the amount they will pay out should items be stolen from a car (usually £100 or £150). The best thing to do is to not leave your expensive items lying around in your car!
These are six of the most common myths associated with car insurance, and will hopefully provide some clarity when it comes for you to renew your policy, or buy a new policy for a new car after you have sold your old car using our easy and free app.
Our app puts you in direct contact with thousands of quality car dealers, which means we can buy any car
you are looking to sell. Why not take a look at our website for more information about how we can help you get more money for selling your car?