Car Insurance Myths: The Truth Explained

Car insurance myths and misunderstandings debunked

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By Cai Bradley
Updated on Monday 16 November 2020

Car speeding at night passing lights

All drivers need car insurance – it’s a legal requirement and we can’t escape it – but how much do we actually know about our policies?

Over the years, car insurance myths have been formed from common misunderstandings and misconceptions. Some of these myths make complete sense and seem totally viable, but that doesn’t make them true.

Before you dive headfirst into the possible pitfalls of car insurance, discover the truth behind the misconceived myths surrounding the cover in the UK right here.

Myth 1 – Third party is always cheaper than fully comprehensive cover

Although it would make sense if third party car insurance – the policy with the least level of cover – was the cheapest option, this is often not the case!

Traditionally, it was; but as so many high-risk drivers began taking out third party policies due to their low cost, providers increased premium prices so much that fully comprehensive cover has now become the most affordable option for most people.

This means that fully comprehensive car insurance provides the most extensive cover AND it’s often the cheapest policy; so why would you take out any other type of cover?

Read more: Types of Car Insurance Explained

Myth 2 – Parking your car in a garage means cheap car insurance

Parking your car in a garage overnight means that it is indoors, secured and protected, but that does not always lead to cheaper car insurance premiums.

In fact, policyholders from certain areas around the UK find that they’re actually offered cheaper premiums if they park their car on the street.

Why is that? Well, quite simply, statistics. Car insurance companies base the cost of their quotes on stats and figures, which tell them that cars are safer on the road than in garages in some areas.

The myth isn’t totally untrue, because it can be cheaper to park your car in a garage, but it depends on where you live. Get quotes from a few different providers and you’ll soon get an idea of the best place to park in your particular area, for insurance purposes at least.

Myth 3 – You’re covered to drive other cars with any comprehensive car insurance policy

For some people with certain policies, this can be true, but not always.

To be covered to drive other people’s cars, your cover must include a ‘driving-other-cars’ (DOC) policy, which is either included as standard or can be added as an optional extra.

Many fully comprehensive insurance policies in the UK do not include such cover, so ensure that you avoid prosecution by checking your policy’s terms and conditions with your provider before taking to the road in someone else’s car.

You’re VERY unlikely to receive any sort of pay-out if you crash someone else’s car without DOC cover included within your policy.

Read more: Can You Insure Yourself to Drive Someone Else’s Car?

Myth 4 – Renewal premiums are cheaper than those offered to new customers

Again, it isn’t always the case that loyalty to insurers will reduce the cost of your car insurance; in fact, it might even leave you with a worse deal than if you switched to a new provider.

Renewals and new customer premiums are usually calculated slightly differently, so it’s important that you get quotes from a variety of insurers each year, or whenever you plan on renewing your policy.

If you get complacent, comfortable, or simply lazy and stop shopping around, it’s likely that you will be paying over-the-odds for your cover.

Myth 5 – Everyone’s car insurance cost drops as soon as they reach 25

It’s probably one of the most common car insurance myths in the industry that all policyholders’ premium cost drops once they reach 25, and it can be true for some.

When certain drivers hit 25, they might see a sudden decline in the cost of their car insurance, but because factors other than age are considered when determining the premium price, this is not the case for all people.

For example, if you reach 25 but have been involved in four road traffic collisions since passing your driving test, your premiums are unlikely to decrease, if at all.

On the other hand, if you have been a safe driver and have started building up your No Claims Bonus, then you should expect to see a fall in your premiums.

Of course, you might see a decrease in premium prices when you hit 25, but it is by no means a guarantee.

Myth 6 – Accidents that were not your fault won’t affect your car insurance cost

Typically, our initial thoughts naturally tell us that if we weren’t at-fault in an accident, our insurance premiums won’t be affected.

But as we mentioned earlier, insurers base all of their decisions on statistics, and the statistics show that those who have been involved in a non-fault accident are more likely to have a fault claim thereafter. This means that, irrespective of who was at-fault, your premiums will probably rise after a car accident.

We have explained six of the most common car insurance myths, but if you want to know more, feel free to browse our range of car insurance resources here at Compare UK Quotes.

One in particular is that a red weather warning voids car insurance, see our article to find out the truth!

Related articles:

Complete Guide to Car Insurance

Types of Car Insurance

Best Car Insurance Providers in the UK

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