Drivers throughout the UK are being urged to be cautious when looking for cheaper automotive insurance coverage, as frequent misconceptions might result in surprising fines and even authorized bother.
Current information 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. Nevertheless, many motorists could also be unknowingly placing themselves in danger by falling for myths about lowering 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 Father or mother because the Essential Driver Lowers Prices
New drivers usually face excessive insurance coverage premiums, prompting some to checklist their dad and mom as the principle driver in an try to chop prices. Nevertheless, this observe—often called “fronting”—is against the law and will result in severe penalties, together with a high-quality 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 aren’t 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 residing in a rural space robotically 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 places may very well have larger insurance coverage prices as a result of components equivalent to elevated accident charges, poorly maintained roads, and dangers equivalent to wildlife-related collisions. Drivers are suggested to supply probably the most correct handle the place their automotive is based totally, guaranteeing it matches official information equivalent to voter registration.
MYTH: Staying with the Similar Insurer is the Most cost-effective Choice
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 end in 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 clients greater than new clients for a similar coverage. Nevertheless, it stays important for drivers to check choices every year to make sure they’re getting the very best deal, slightly 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, trendy black field methods primarily monitor driving behaviour, equivalent to velocity, braking, and cornering.
Quite than limiting drivers, these insurance policies can truly reward protected motorists with decrease premiums. Those that display 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 vital than ever for drivers to separate truth 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 selections about their first insurance policies.
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