When applying for car insurance it pays to be informed, especially about the potential pitfalls and black spots.
In this guide, we take a look at some mistakes that people make when getting cover.
Opting for the lowest possible premium
Budget constraints will naturally have an impact on the level of cover you take out - especially if you’re taking out cover for the first time. However, cutting costs might not be the best avenue to drive down as you may sacrifice cover that you need in exchange for paying less.
If you have a brand new and expensive car then there’s no point underinsuring it when you know it will be exposed to risks. For example, if your car is parked in a public space overnight you might require a minimum of third party, fire and theft cover as opposed to just third-party cover as there is an increased chance of something going wrong.
Not doing enough research
Motorists sometimes don’t do sufficient research before taking out a policy. Choosing the right insurance cover takes time and it shouldn't be done on a whim.
First off, get a quote from as many insurers as possible and don't be afraid to look at specialist or less well-known providers.
And while the level of cover your policy provides is perhaps the most important consideration, drivers often disregard the reputation of insurance companies in exchange for a low quote. Take the time to research other areas of an insurer's offering such as their online experience, customer service track record as well as their claims-settlement ratio.
Avoiding add-ons and extras
As a wise person once said: "Being underinsured is as almost as bad as not being insured at all", and this is certainly true when it comes to insuring your car for the road.
While a low insurance premium is desirable, it's not much good if you have to sacrifice the extra protection and cover that you need.
Add-ons from most insurers will include cover for broken glass (windscreen/windows/sunroof), lost keys, breakdown assistance and all the way through to protection for your no-claims discount.
Lying on your application
When applying for car insurance, an insurance company will build up an accurate driver profile for you which calculates your risk. This is based on the information that you provide. For this reason, being completely honest with your insurance company is paramount. Nothing good will come from even the smallest lie because if your insurance company finds out then you could stand to lose your cover, have a claim rejected or even jeopardise your ability to receive cover elsewhere in the future.
Choosing the wrong class of use
There are a number of terms to be aware of when taking out car insurance, one of which is ‘class of use’. This is your insurance company simply asking what you will be using your car for.
Most drivers will be using their car for social, domestic and pleasure purposes. However, you must also inform your insurer if you’ll be using your car to travel to and from work at any point as this will also affect the price quoted. Most insurers will include this as an option when filling out a quote online or will discuss this during a phone consultation.
Not notifying your insurance company of penalty points
Let’s face it, nobody wants to be in a position where they have to contact their insurer about having received penalty points. While it’s not usually the end of the world if you receive one or two points, some drivers make the mistake of thinking it’s okay not to inform their insurer until their policy is up for renewal. However, if you're convicted of any type of driving offence including getting penalty points then you must disclose this to your insurer as soon as possible, not just at renewal time.
While most drivers with four or fewer penalty points generally won’t have a problem getting insured, they will usually have to incur a loading penalty on the cost of their premium.
Not notifying your insurance company of an incident
Whether you’ve been driving for over 10 years or if you’re new to the road, chances are you’re likely to get a few minor bumps and scrapes. While you may not always want to make a claim if you get into an incident and sometimes prefer to cover the cost of any repairs yourself, you must always let your insurance company know should something happen.
Your insurance company is responsible for insuring you and any incidents that could change the shape of your driving profile are important when calculating an accurate premium. Furthermore, you must also confirm whether somebody else was involved in the incident and if they received any injuries or damage to their vehicle in case a separate claim is eventually made down the line.
Not receiving the discounts you qualify for
When comparing quotes, make sure you don't miss out on any discounts that could help to lower your premium.
Car insurance companies offer discounts for the no-claims bonus you carry as well as for things like anti-theft devices installed in your car and even where your car is parked overnight.
So, don’t be afraid to ask for a complete list of the things each insurer offers discounts for and make sure that you receive each one that you’re entitled to as this will help you to get the best deal.
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