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1. I won't have to pay an excess if an accident is not my fault
or my car is stolen.
An excess is agreed at the time a policy is purchased and it is
the first part of any claims cost which the policyholder agrees
to pay if they make a claim. It is really a signed contract or agreement.
If an accident is not your fault you may only get your excess back
if your insurance company gets all of its money back from the third
party. In cases where your car is stolen it is unlikely that the
thief will get caught so you will almost definitely have to pay
your excess.
Managing director of elephant.co.uk, Tanzie Oliver, said:
"A lot of people choose to take out a higher excess in return
for a reduction in their premium. They might think they will never
need to make a claim, but they should consider if they can afford
the higher excess when they buy their insurance."
2. My policy includes 'driving other cars' cover.
Therefore I am covered fully comprehensively on anybody's car I
drive with their permission.
Many people mistakenly think a comprehensive policy that includes
'driving other cars' cover; means they are fully covered to drive
any car. Most policies, however, will provide only third party cover
if you drive someone else's car. So if you are involved in an accident
in another car, you could be liable for your own damage, which could
prove very costly.
Tanzie Oliver, said: "It's important to know the conditions
of your insurance so you don't come unstuck if you have to make
a claim. I know most people do not read the details of their policy,
but if they would take a bit of time to do just that it could prevent
a nasty shock at a later time."
3. I can save money on my insurance by putting it in someone
else's name and being the named driver.
Insurers cottoned on to this idea a long time ago, they will ask
how many cars are in each house and who is the main driver. If you
don't tell the truth you could make your insurance invalid. If you
have a claim your insurer will see from the log book who the owner
of the car is and they could refuse to deal with it. But that doesn't
stop some motorists, often young people, from trying to put the
insurance in their Mum's name!
4. I can claim for as many personal effects as I want if my
car is broken into.
Most insurance companies have an upper limit for the amount they
will pay for items stolen from a car. This is typically £100
or £150, not including a stereo. A lot of motorists think
they can claim for as much as they want but are soon disappointed
when they contact their insurer.
Tanzie Oliver, said: "In common with most insurers, elephant.co.uk
limits the amount it pays for personal effects to £100, obviously
this doesn't go far if say a laptop or mobile phone are stolen.
We want to discourage motorists from leaving anything on show in
their cars that could tempt a thief."
5. I won't be able to get insured if I have a driving conviction.
While it's true that you will find fewer companies willing to insure
you if you have a serious conviction, such as drink driving, it
doesn't mean it is impossible. Some companies specialise in insuring
high-risk motorists, including people with convictions, and even
mainstream companies like elephant.co.uk will consider insuring
anyone. However it is likely that you will pay higher premiums.
For speeding convictions it is a different story. With the increasing
number of speed cameras, a huge number of motorists now have points
on their licences. Just the one speeding conviction will barely
have any affect on the premium, but more than one will increase
them.
Issue date: 12/10/2004
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