Industry experts have debunked several motor car insurance myths recently in a bid to educate consumers more thoroughly.
One of the most popular myths is that of a speeding ticket being the catalyst for a hike in car insurance rates. However according to insurance insiders, this is not necessarily the case. Car insurance companies instead take mitigating factors into account, such as how quickly a motorist was travelling and whether or not it’s the driver’s first offence. Additionally some car insurance groups have been known to give their drivers some respite if they were speeding for a valid reason such as a medical emergency.
Another common myth is that car insurance policies cover their drivers on overseas trips. Unfortunately this may not be the case. Motorists planning to go on holiday by car should inform their insurer before departing. Most insurers can either extend an existing agreement or move the motorists to a more appropriate policy to provide the drivers with the right level of cover.
Finally, taking out ‘driving other cars’ cover may not necessarily allow you to drive any car you like and still retain full cover. A fully comprehensive policy most likely provides cover in the event of a motorists driving other cars. However this doesn’t mean that the cover a driver has is complete.
The reality is that most DOC cover is only third-party cover. What this means is that a driver’s insurance would cover any costs incurred in damaging the second vehicle in the event of an accident; the cover does nothing for the car the motorist was driving at the time.
And while many people believe that cars painted red might cost more to cover, most insurers will base a given driver’s rate on the make, model, age, engine size, and price of their car. Other factors include address and driving record – whether or not your Ford Fiesta is painted fire engine red is usually not a deciding factor in your annual premiums.