There are certain false beliefs that most people hold about short-term car 
insurance that often catch them by surprise, especially during the claims process. Some of these beliefs are common reasons why claims are repudiated by insurers. We have rounded up the top most misguided car insurance myths that people hold about insurance and the facts to destroy them.
Belief: My car insurance cover applies to all drivers of my car on the same terms.
Fact: Car insurance policies are rated for the regular driver of the vehicle, i.e. the person who drives the car the most. If you are specified as the regular driver of the car but your 20 year old son actually drives the car more than you do, the insurance company can reject the claim if your son is the driver in an unfortunate accident. This is because the premium was created based on your risk profile and not your son’s. If you son borrows the vehicle on a single occasion and is involved in an accident, the insurance company is likely to apply a young driver penalty excess. Check to see what excesses apply on your policy.
Belief: A lapse in car insurance will not affect my insurance rate.
Fact: Frequent lapses in cover can result in higher premiums or declined insurance when a policyholder decides to resume cover. Although it may make financial sense to lapse cover as no premiums will be payable, insurers will more likely view you as a higher risk than policyholders who keep on paying premiums on time.
Belief: I do not have to pay an excess if the accident was not my fault.
Fact: You will need to pay the excess regardless of whether or not the accident was your fault. If another person causes the accident, your insurance company will still charge you the excess stated on the policy but will refund the excess if a successful recovery is made from the third party. If the third party is insured with another insurer, your company is in a better position to recover the full amount of their loss (plus your excess) than if the third party is not insured. If the amount is recovered, your excess will be paid back to you.
Belief: My insurance company will automatically pay for car rental in case my car is not working after an accident.
Fact: Car rental is usually an additional option that can be added to your cover, however you will need to pay an additional amount for that cover and full the vehicle with fuel, your insurance will not cover these costs.
Belief: Car insurance rates reduces dramatically when a driver turns 25.
Fact: Younger and older drivers tend to have more accidents so age isn’t a main factor in determining premium. As you grow older the age factor may carry less weight as you become statistically less likely to cause an accident with more years of driving experience behind you.
We hope that we were able to answer most of your car insurance myths questions. If you have any more, please comment them in the section below.
