When it comes to car insurance, there are many myths and misconceptions about what factors influence your premium. And after the high prices of last year, it’s vital that you understand how your insurance is calculated. So, let’s dive into the truth behind these elements and how they actually impact your car insurance rates.
Myth: dashcams lower your insurance premium
Dashcams, or dashboard cameras, have become increasingly popular among drivers. These devices record your journey, providing video evidence in case of accidents or other incidents. But do they really affect your insurance premium?
Reality: While dashcams offer several benefits, such as providing clear evidence in the event of an accident, they do not directly lower your insurance premium. Most insurance companies do not offer discounts simply for having a dashcam installed.
However, dashcams can indirectly save you money by helping to prove you were not at fault in an accident, potentially preventing your premium from increasing due to a claim and speeding up the claims process.
Dashcams can also deter fraudulent claims by capturing the true events of an incident. Also, some dashcams also record inside the vehicle, which can be useful for monitoring driver behaviour, especially for parents with teenage drivers.
Myth: a high driver score always leads to lower premiums
Driver scores are another factor that many believe can significantly impact insurance premiums. These scores are often derived from telematics devices or apps that monitor your driving habits, such as speed, braking, and acceleration.
Reality: While a high driver score can positively influence your insurance rates, it is not the sole factor that insurers consider. Driver scores are part of a broader assessment that includes your driving history, age, location, and the type of vehicle you drive. Telematics or black box insurance are usually best for younger drivers.
Consistent safe driving, such as obeying speed limits and avoiding harsh braking, can improve your driver score, as can the amount you drive. A lower mileage often indicates lower risk to insurers. Driving during safer times of the day, such as avoiding late-night trips, can also positively impact your score.
Insurers use these scores to gauge your risk level, but they are just one piece of the puzzle. While maintaining a high driver score can help you secure better rates, it is essential to understand that it works in conjunction with other factors.
Debunking five more common car insurance myths
Beyond dashcams and driver scores, several other myths persist about what affects car insurance premiums. Let’s debunk a few:
Myth: the colour of your car affects your insurance rate
Reality: It’s unlikely that the colour of your car has an impact on your insurance premium. Insurers focus on factors like the make, model, age, and safety features of your vehicle.
Myth: you can negotiate your insurance premium
Reality: Insurance premiums are calculated based on risk assessments and state regulations. While you can’t negotiate the rates, you can shop around for better quotes and take advantage of available discounts.
Myth: older cars are cheaper to insure
Reality: While older cars may have lower market value, they can sometimes be more expensive to insure due to the lack of modern safety features and higher repair costs.
Myth: young drivers can get cheaper insurance by putting the policy in their parent’s name
Reality: Putting a parent or guardian as the main driver on a policy for a new or young driver is called ‘fronting’ and is illegal. It will invalidate your policy and could even see you fined up to £5,000.
You can add a secondary or additional driver, which may help reduce your premium, but the policy should always be in the main driver’s name.
Myth: your job title isn’t important, it’s just insurance admin
Reality: Your job role is an important factor in calculating your premium, as it indicates your risk level. If you’re caught lying about this, your policy could be invalid and even land you in legal trouble!
How to find great value car insurance
Understanding what truly affects your car insurance premium can help you make informed decisions and potentially save you money. While dashcams and driver scores play roles in the broader picture, they are not the only factors at play. Your policy needs to fully reflect your needs and your lifestyle.
In this world of chatbots, comparison sites and call centres, we still feel that the best way to understand what our clients need is by talking to a real human being. Whether that’s a call to our local branches, or a chat in branch over a cup of tea, we’re there to make sure that you understand all the options available to you, and we can advise on the best cover options for your needs.
As Howden is a specialist insurance broker, we do the hard work for you. We get to know you and your insurance needs and do the heavy lifting of searching for the right policy. So you can relax, knowing you’re covered by a policy that’s tailormade to you.
To learn more, solve any of your insurance queries or talk to one of our insurance experts, find your local branch here and give the team a call.
Sources: GoCompare, DriveScore, RAC.
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- Are you driving in an uninsured hotspot?
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- Your car’s essential winter vitamins
This is a marketing blog by Howden Insurance.