Drivers throughout the UK are being urged to be cautious when looking for cheaper automotive insurance coverage, as widespread misconceptions might result in sudden fines and even authorized bother.
Latest information from Vertu Motors has revealed a staggering 173% enhance in Google searches for ‘low cost automotive insurance coverage quotes on-line’ over the past 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 selections, specialists at Vertu Motors have debunked a few of the most widespread insurance coverage misunderstandings.
MYTH: Itemizing a Guardian because the Fundamental Driver Lowers Prices
New drivers typically face excessive insurance coverage premiums, prompting some to listing their mother and father as the primary driver in an try to chop prices. Nevertheless, this follow—generally known as “fronting”—is unlawful and will result in severe penalties, together with a advantageous of as much as £5,000, six penalty factors, and even the cancellation of the coverage.
As a substitute, younger drivers ought to contemplate 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 legislation.
MYTH: Rural Areas All the time Imply Cheaper Insurance coverage
It’s generally believed that dwelling in a rural space robotically ends in 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 on account of elements equivalent to elevated accident charges, poorly maintained roads, and dangers equivalent to wildlife-related collisions. Drivers are suggested to offer probably the most correct tackle the place their automotive is based totally, guaranteeing it matches official data equivalent to voter registration.
MYTH: Staying with the Similar Insurer is the Most cost-effective Possibility
Loyalty doesn’t all the time 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 all the time the case.
Since January 2022, the Monetary Conduct Authority (FCA) has banned insurers from charging current clients greater than new clients for a similar coverage. Nevertheless, it stays important for drivers to match choices every year to make sure they’re getting the very best deal, fairly than assuming their present supplier is probably the most cost-effective alternative.
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, fashionable black field programs primarily monitor driving behaviour, equivalent to velocity, braking, and cornering.
Fairly than proscribing drivers, these insurance policies can truly reward secure motorists with decrease premiums. Those that exhibit accountable driving habits may even see a discount of their insurance coverage prices, whereas riskier drivers might face elevated charges.
Making Knowledgeable Selections
With automotive insurance coverage prices on the rise, it’s extra necessary than ever for drivers to separate truth from fiction. By understanding the realities behind these widespread 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 selections might help them keep away from pitfalls and make knowledgeable choices about their first insurance policies.
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