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% enhance 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 decreasing premiums. To assist drivers make knowledgeable decisions, consultants at Vertu Motors have debunked a few of the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Dad or mum 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. Nevertheless, this follow—referred to as “fronting”—is prohibited and will result in severe penalties, together with a fantastic 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, offered 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 Places All the time Imply Cheaper Insurance coverage
It’s generally believed that dwelling in a rural space robotically leads to 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 as a result of components equivalent to elevated accident charges, poorly maintained roads, and dangers equivalent to wildlife-related collisions. Drivers are suggested to offer essentially the most correct deal with the place their automotive is based, 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 in relation 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 prospects greater than new prospects for a similar coverage. Nevertheless, it stays important for drivers to check choices annually to make sure they’re getting the very best deal, reasonably 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 techniques primarily monitor driving behaviour, equivalent to pace, braking, and cornering.
Fairly than proscribing drivers, these insurance policies can really reward protected motorists with decrease premiums. Those that show accountable driving habits may 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 reality from fiction. By understanding the realities behind these frequent myths, motorists can keep away from expensive errors and guarantee they’re selecting the best 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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