The truth behind car insurance myths

Everyone knows red cars are more expensive to insure, right? Wrong.

With the latest data from the AA revealing that the average comprehensive premium now costs £1,035.45, car insurance is a huge investment for most drivers.

Worryingly, however, there are a number of myths and misconceptions around car insurance. If you fall for one of these, you could end up overpaying for your cover or potentially invalidate your policy.

We reveal some of the most common car insurance myths.

If I don’t drive my car I don’t need insurance
Wrong. The Continuous Insurance Enforcement (CIE) law requires all registered vehicles to have insurance. It had previously only been illegal to drive uninsured, however, this law, which took effect last year requires all vehicles that are taxed to be insured, even if they are not used.

Those of you who own a car that is not insured must either take out insurance or make a Statutory Off-Road Notification (SORN) with the Driver and Vehicle Licensing Agency (DVLA) – even if you don't drive it.

If I get a speeding ticket my insurance rates will go up
A number of factors come into play here. Your first minor speeding ticket may not have an affect on your insurance rate. However, the speed you were travelling and the frequency of infractions will play a role in determining your premiums.

If I have comprehensive cover I will be insured abroad
A fully comprehensive insurance policy provides the most extensive cover if you’re driving on British roads. Once you leave the UK, however, you may find your level of protection plummets significantly.

For instance, some insurers will only offer you third party cover abroad even if you are fully comprehensive in the UK. This means the company would only reimburse other people for their injuries and damaged property. Other companies will only pay out if you have provided advance warning you will be driving in another country.

Before you head off on holiday, it would be wise to check your policy’s fine print.

My insurance will be more expensive because I am a man
From 21 December this year, insurers can no longer take gender into account as a risk factor when calculating the cost of insurance cover the European Union’s top court has ruled.

Historically, young women have paid significantly less than their male counterparts for their insurance premiums because women are less likely to be involved in an accident.

As a result of this ruling, it’s likely that premiums will increase substantially for many female drivers.

If I buy a red car it will cost more to insure
Wrong. This is a common misconception. Many believe that insurers automatically associate red with youth and aggressive driving but in reality, insurance companies are colour blind.

A spokesman from the AA said that there is no statistical evidence that a red car will increase your insurance premium. Insurers decide what rate you will pay based on the vehicle's year, make, model, body type, and engine size. Other factors that come into play are your driving record, safety statistics, price, and how attractive your vehicle is to thieves.

**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**

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