Getting a new car is stressful enough without the added worries that come with the myths surrounding the matter of car insurance. Seeing how hard this often gets and how it usually makes people end up picking less than the best policies for their cars, I have taken it up myself to demystify some of the more common myths. Hopefully, this goes a long way in reducing the stress that comes with picking a new car and the best insurance policies to go with it.
1. The Type Of License You Hold Won’t Affect Your Premium
This is quite untrue as it is one of the many factors considered by companies to determine just how risky a venture you will be. Someone with a provisional license will end up paying more than someone with a professional license as they believe that the former is more of a risk.
2. You Are Legally Allowed To Get A Minimum Of Third-Party, Fire And Theft Cover
Again, this is false as the only cover you are required by law to obtain is third-party. The others are options that range from this to third-party, fire, and theft (which is the most common type of cover), to the comprehensive insurance cover that protects you from everything.
Each of these covers has varying plans and prices just like every other thing.
3. Companies Hide Cheaper Premiums
This can’t be further from the truth. The reason being that it is illegal and no company will want to risk a lawsuit. Insurance companies are legally obligated to give you a comprehensive overview of all the policies they offer before your policy is due.
This renewal notice alongside your no claims discount certificate must be sent to you at least 20 days before the end of your policy so you have something to show your new insurer if you decide to shop around for something else.
4. As A Young Driver, You Cannot Get Your Car Insured
This is very far from the truth as young drivers can get their cars insured. Seeing how companies tend to charge young drivers more, I believe they will be more than eager to sign up more young drivers.
However, the exorbitant price is used to be a problem since they are often charged to the accounts of a parent. Nowadays though, things can be put under check what is called telematics car insurance. This works by closing monitoring a combination of on-board diagnostics to analyse how safely a driver uses a car. It goes a long way in helping to reduce premiums for a young driver.
5. You Can Always Get Your No Claims Bonus
No! This is not possible. It is a rule of thumb that your no claims bonus doesn’t carry over indefinitely under any circumstance. Therefore, if you are planning on travelling abroad without the intention of having an active policy over this time, it will be wise to contact your insurer to confirm just how long you have till your no claims discount becomes void.
6. Insurance For A Private Car Is The Same As That Of A Commercial Car
Another untrue myth. One of the many factors mentioned earlier to be considered by insurance agencies is whether or not the vehicle to be insured will be used in a private or commercial capacity.
For example, a car that is to be used in a commercial capacity is expected to have travelled about 40,000 kilometres in a year, therefore exposing it to more risk factors and increasing the potential for loss, theft, or damage. Automatically, insurance companies will be expected to charge more.
7. Your Best Option Is Your Cheapest Policy
Very often due to the stress that comes with choosing an insurance policy, be it a house, health or any other insurance, people tend to just go for the cheapest to save time. However, when choosing a policy for your car, the cheapest isn’t always the best.
To pick a policy that won’t come back to haunt you, you need to carefully analyse your needs and go for the policy that best covers those needs. It will pay you to carefully analyse each policy and mull over its advantages. Yes, it takes time, but you will be glad you put in the work when the time comes.
8. Insurers Are Not Allowed To Be Differential
As basic as this might seem, it is not so. Under section 5(2) of the Equal Status Act of 2000, the law in Ireland allows car insurers to base the premiums they charge different people on their age, residence, and even their jobs among other factors.
For example, if you are a young driver living in the rough side of a city, your premiums will be way higher than that of an elderly person who lives in the rural area.
9. My Job Title Is Inconsequential To My Quote
As said above, insurers take into consideration the type of job you do when calculating your premium. It all comes to your choice of words when filling the occupation space in your form. For example, a music teacher will pay more than a teacher and an office manager will pay more than an office administrator. Also, construction workers get higher quotes than builders who in turn also pay more than bricklayers.
However, a parent or retired person will pay considerably less than an unemployed person.
As nice as it would be to try out how different job titles will affect your premium, you should always remember that it is illegal to lie about your job.
10. An Insurance Quote Never Expires
The time a quote is valid for is entirely dependent on the insurer. However, they don’t usually last more than 30 days (i.e. 1 month). The same goes for discounts but these tend to expire more quickly. Say in about a week or so.
Although many myths are circulating in the insurance world, thoroughly researching before making decisions will save you a lot of troubles and time in the long run.
Tags: car insurance