When it comes to your insurance policy, do you really know your onions, or do you just think you have the facts?
Making assumptions is a dangerous game, and in the motor trade it pays to do some fact-checking. We’re not just talking about saving pennies either; if you don’t really understand your insurance then you might even be unknowingly in breach of the policy, or worse, the law. So, take some time to read the ins and outs of your policy wording and to give you a little heads-up, here are some of the most commonly believed myths and a few bona fide “NO-NOs”.
1. Buying insurance directly from the provider will be the cheapest option.
You would think so, but it’s not always the case! Shop around, as you might get a better deal through a comparison service.
2. Renewing with my current insurer is the best bet.
Rather than rewarding you for your loyalty, many providers take advantage of your complacency and charge you more than they need to. Try gathering quotes elsewhere, and if they are cheaper, confront your insurer and see if they can match or better the competing premiums.
3. It’s cheapest to just get a third-party policy.
Never assume this! It only takes one extra second to change the level of cover to something better than third party. Sometimes it’s the same price, or cheaper, for the better coverage.
4. I’ve got fully comp, so I can drive any car.
This is quite possible but unless you’ve read the wording and eligibility criteria in your policy then don’t assume so. It’s not always the case.
5. I should put my parents as the main drivers to make my policy cheaper.
Don’t do this! You can add them as second drivers if it helps reduce the policy cost, but falsely using them as named drivers is a type of fraud. It’s known as “fronting” and can land you in hot water.
6. My premium will be lower if I use a garage.
This depends on the garage, and the area. In a high-theft area, a garage might be considered a risk-reduction. In a small garage, you might be more likely to scrape your car. Pop in your postcode and let the algorithms do their magic.
7. My premium will be lower if I’m over 25.
Generally younger drivers have to pay more, but so many factors can contribute to a policy price that this is not always the case. If you turn 26 and change to a riskier job, or move to a high-crime area, or gain a conviction, then your age won’t act as a magic wand to mitigate all of the other considerations of covering you.
If you are looking for a quote on a motor trade insurance policy, you could save up to 67.5% with Unicom. Click here to get a quote that could save you £££’s
8. I’ll be penalised for commercial use of my vehicle.
There are times that insurers will want you to pay more for business use of your car, but it’s not always the case. Sometimes the fact that your livelihood depends on your car can count in your favour, as the insurance provider will recognise that you need to take very good care of your vehicle.
9. My insurance covers me for everything.
If you do something as irresponsible as driving under the influence of drink or drugs then your insurer will pay the necessary damages to anyone winning a claim against you, but they might be entitled to recover the costs from you.
10. An old banger will be cheap to insure.
Of course, new and used cars will have different policy prices, but it’s not that clear-cut. A cheap older car won’t cost much to replace, but it’s also probably easier to break into, and won’t have the safety features and stopping technology of more recent models.
11. There’s no point trying to find insurance; I have a driving conviction.
Whilst it’s going to be harder to find an insurer, they really do exist. If you’re prepared to pay the premium for being a higher-risk driver, you can find someone to cover you.
12. Well, at least there’s the courtesy car.
That silver lining after the fender bender! Hopefully you’ll get a courtesy car, but not all policies offer it, and even when they do it can be subject to availability.
As you can see, that’s a lot of insurance misconceptions! So before prising off those trade plates after a successful test drive and buying the first policy you find, make sure you really know what you’re covered for!