Car insurance is affected by many things, but there are many myths and legends that are said to influence the final insurance premium. For example, you know that only going for third-party cover is cheaper than going fully comprehensive and that keeping your car in a garage will keep your premium down, right? Wrong!
Luckily for you, we’re in the know, so here are the top most believed car insurance myths debunked!
Once you reach 25, your premium drops
This is not necessarily a factor when it comes to how much you pay for car insurance – sure, your age does come into it, but someone who has had a clear driving record from the day they passed their test when they were 17 will likely have cheaper insurance at 20 than a 25 year old with speeding points and an insurance claim. Each insurance quote is valued on an individual basis, so keeping points off your license and not claiming will greatly work in your favour!
Insurers reward loyalty
Drivers in the UK stay with the same insurance provider for an average of 2.7 years, but more often than not there are significant savings to make by switching company. As a nation, we waste a collective £9.4 billion by not shopping around and sticking to what we know – we are often seduced by ‘exclusive deals’ in our first year, but by renewal time in 12 months, we have to pay for this hefty discount and we’re too lazy to do anything about it.
Third party cover is cheaper than fully comp
As third-party cover offers less protection than fully comp, you’d think it would be cheaper, however, as younger drivers typically go towards third party to keep the cost of driving down, it can be more expensive as they are seen as higher risk. Again, this is assessed on an individual basis but younger drivers may benefit more from going all-out when it comes to choosing insurance cover.
Garaging a car will keep the premium down
Oddly enough, no. If you keep your car parked in a garage overnight, you could end up paying more than if you left it out in the cold to fend for itself. This is because the risk of having an accident while trying to park in an enclosed space is far greater than your car being hit or stolen in a drive or on the street.
The colour of your car effects insurance rates
The myth to trump all myths – the ‘fact’ that a red car is more likely to be caught speeding than any other car of any other colour. We’re not too sure where this one came from – probably from Ferrari-red racing cars speeding around tracks. But anyway, the colour of your car does not, in any way, affect how much you pay for car insurance. Getting caught speeding will, however.