Common Car Insurance myths exposed - part 1

As the motor insurance industry attempts to claw back a £2 billion loss, vehicle insurance premiums continue to rise profusely.

A growth in personal injury claims is said to be the main factor behind the rise: drivers will have to pay for them with more expensive car insurance premiums.

This could result in a further rise in car insurance premiums of up to 30% in the future, says the AA, as insurance firms look to cover their losses.

The subject of car insurance is thus a hot topic for many - and because of this, many myths are cropping up.

Whether these are true or false can have a big impact on how much you pay, so it is important you know which are valid and which really are just myths.

Kahnnews has decided to play detective and found a number of things you should be aware of when shopping for or considering car insurance.

And don't worry, we won't charge you for reading ahead.

Third party is cheaper than fully comprehensive:

NO: this should be the case, but insurers have clicked onto the fact that younger drivers want to pay less and are therefore more inclined to take up the third party option. Therefore, they have increased third party-cover premiums. Our advice is to always compare both third party and fully comprehensive quotes when shopping around.

If a claim is not your fault, you don't have to pay your excess:

YES: This applies if the insurer can claim it back from the other party. If the other driver is not insured, or the courts cannot catch and sue the thief who stole your car, you will have to pay for the excess.

I don't trust price comparison web sites. They just make commission:

NO: comparison sites do not charge commission, and you will find that you can save money by simply comparing multiple insurers. It is actually worthwhile to use a comparison site to find the cheapest insurer, as opposed to going to an insurance company direct.

Fully comprehensive insurance covers you to drive any car:

YES: this is true for most insurance policies (but check your policy before assuming so). However, that cover is third-party only. If you have an accident, you will be covered only for damage to the other person - NOT the car you are driving...

Premiums do not increase if an accident is not your fault

NO: Car insurers believe an incident which you may be involved in is an indicator that you may be at more risk of having an accident in the future – even if you are not to blame. This is the case even if you protect your no-claim bonus. So in short, your no-claims bonus will remain intact, however, the cost of the policy it discounts may go up.

The cheaper the car insurance the better

NO: it's important to not just try and find the cheapest possible insurance policy, but to find the best package out there. The most inexpensive policy may not include free windscreen replacement, for example, and may have a very high excess. So it's best to compare and contrast before deciding on which one to go for.

Enjoy this article? look out for part 2 of this feature - exclusive to Kahnnews.