8 Insurance Wives Tales in the UK
Insurance is complicated.
The terms and conditions for car insurance, life insurance and travel insurance are often tens of pages long and almost impossible to understand.
Because of this, there are many common misconceptions which could leave you stranded when you go to make a claim – here are 10 of the most commonly believed insurance myths.
1. Third-party insurance is always cheaper – FALSE!
When looking for cheap car insurance, many people believe that the best option is third-party cover – after all, you’re covered for less so it’s bound to cut the costs.
Only, it doesn’t. Some insurers have identified that those who opt for third-party car insurance tend to make more claims which, over time, has caused the cost of this basic cover to increase. It won’t always be the case, but some car insurance providers will offer you comprehensive car insurance for a cheaper price. Remember to shop around beforehand and compare car insurance quotes to find the most affordable deal for you.
2. I should wait as long as possible before buying travel insurance – FALSE!
It’s true that the closer you get to that eagerly-anticipated week in the sun (or snow, or rain!), the cheaper your travel insurance will be – but you shouldn’t wait until a few days before to buy it.
So, when does travel insurance start? From the day you leave, right? Wrong! Travel insurance covers you against any unforeseen circumstances causing you to cancel – for example, the death of a family member.
Note: If the death occurs as a result of a long-term illness, you may have to pay extra for your cover. Be sure to ask your provider any questions you may have about your individual policy.
If you’re wondering when to buy travel insurance, then it is recommended that you do so as soon as you book your trip. It may cost a few pounds more, but could save you the entire cost of your holiday in the long run!
3. You don’t need travel insurance if you have an EHIC card – FALSE!
A European Health Insurance Card (EHIC) is available free of charge to everybody residing within a country covered by the European Union (and Switzerland).
What does an EHIC card cover?
It entitles you to medical treatment in other member countries either for free or at a significantly reduced cost, covering both immediate and pre-existing conditions.
However, this will not cover lesser considered expenses, such as the cost of an extended stay in the country for somebody to stay by your side or your eventual journey home.
These are costs which can be covered for a minimal fee by your travel insurance, so don’t just assume that your EHIC card will be ample!
EHIC after Brexit
If the United Kingdom leave the European Union with no deal in place, your EHIC card will not be valid if you’re a UK resident. If a deal is agreed, it is still uncertain how the EHIC will be affected.
4. Online prices are always cheaper – FALSE!
Using price comparison websites is usually your best chance of finding very cheap car insurance, but this isn’t always the case.
Some insurers and policies – such as some specialist young person’s driving insurance – cannot be found on price comparison websites but might offer you a better deal if you give them a call and speak with them directly.
An insurance comparison site will give you a rough idea of how much you can expect to pay for your insurance, but it is always best to dig a bit deeper before committing yourself to a policy.
5. Car insurance premiums always go down if you don’t claim – FALSE!
In an ideal world, car insurance premiums would be reduced for every year you didn’t make a claim.
Unfortunately, that isn’t the case.
Some insurers will increase your insurance policy year-on-year in the hope that you might not notice, while there are a number of other factors such as your age, job and address which can have an impact on your car insurance premium.
6. All black box car insurance policies have a curfew – FALSE!
Black box car insurance – also known as telematics car insurance – monitors your driving in order to provide you with an insurance premium reflective of your performance behind the wheel.
Some telematics car insurance policies will include a curfew, restricting the time of day that you can drive, however these are becoming rarer as insurers choose to focus on factors such as speed, braking, mileage and acceleration instead.
To find out more about telematics insurance, have a read of our complete guide to black box car insurance.
7. Life insurance never pays out – FALSE!
One of the common misconceptions of life insurance is that providers often refuse to pay out, but this is a slightly skewed view.
There are reasons life insurance won’t pay out, however these will be stated clearly in your policy before you purchase it – the list of life insurance policies not paying claims is shorter than you might expect.
If you want to check how much life insurance would cost you, get a free quote from some of the UK’s most popular insurer providers here at Bobatoo.
What percentage of life insurance policies are paid out?
ABI figures suggest that 99.6% of life insurance claims are paid out.
8. It’s just one pint, you’ll be fine! – FALSE!
It is true that, for most people (although this can vary from person-to-person), one pint of beer is not enough to deem you over the UK drink drive limit.
However, when it comes to car insurance, some providers might claim back the cost of a claim made in the event of an accident if you have even the slightest whiff of alcohol on your breath.
This would be rare occurrence if it were to happen to you, however it is not unheard of.
To find out more about the various insurance policies available through Bobatoo, head over to our insurance home page where we’ll help you to find the best quotes.