Top ten car insurance myths busted
It’s required by law, but car insurance tends to be regarded as a necessary evil by many car owners. As such, everyone’s always looking to save a few pennies come renewal time.
But some of the conventional wisdom about car insurance and how to save money isn’t necessarily true. Not only that, but it can significantly degrade or invalidate your coverage should you actually need to make a claim.
The Car Expert has set out to answer some of the commonly asked questions about what you should and shouldn’t do when looking for car insurance.
Myth #1. Comprehensive cover allows you to drive any car
FALSE – This often used to be the case, but policies that allow you to do this are increasingly rare. Many insurers have removed ‘driving other cars’ (DOC) cover altogether, particularly for younger drivers and newer policies. Therefore, it is wise to check the ‘driving other cars’ section of your policy documents before getting behind the wheel of a car that your insurer does not know about.
If you are allowed, keep in mind that you are usually only covered for third-party liability, so any potential damage done to the car you are driving will have to be paid for out of your pocket.
You shouldn’t drive another vehicle unless you are sure you will be covered, and you must always ask permission from the vehicle owner.
Myth #2. Third-party cover is always cheaper than comprehensive
FALSE – Third-party cover is the minimum level of cover required by law. This will cover damage to another person’s car along with compensation for anyone injured but not for yourself or your own vehicle if the accident is your fault.
It may seem logical that the minimum level of cover will come at a minimum cost, but this isn’t always the case. High-risk drivers tend to opt for the lowest price cover so as a result, this has driven the price of third-party-only cover-up.
It’s wise to do as much research as possible to find the best price for the best level of cover. It’s possible that fully comprehensive cover can end up costing the same or even less than third-party cover and it comes with the bonus that, if you are in an accident, your vehicle will be covered if it is damaged.
Myth #3. Minor modifications don’t need to be declared
FALSE – Many drivers assume only major performance upgrades need to be declared to their insurer, but that’s not the case. Even seemingly harmless modifications can affect your insurance policy.
Insurers generally want to know about any changes from the car’s original specification, whether they’re cosmetic, practical or performance-related. That could include alloy wheels, tinted windows, upgraded stereos, tow bars, body kits, suspension changes or even a remap to increase engine performance.
Some modifications may have little or no impact on your premium, while others could increase the cost of cover. In some cases, an insurer may decide not to insure the vehicle at all.
Failing to declare modifications could cause problems if you need to make a claim. Your insurer may reduce a payout or, in the most serious cases, refuse a claim altogether if the undisclosed modification was relevant to the incident.
If you’re unsure whether something counts as a modification, it’s always best to ask your insurer before fitting it. A quick phone call could save a lot of hassle later.
Myth #4. Parking your car in the garage is cheaper
FALSE – A safe space to park your car may seem like it would reduce your insurance policy but again, this is not always the case. In the eyes of the insurer, this could be deemed riskier than the driveway. Manoeuvring in and out of a garage potentially increases the chance of bumping your vehicle.
It’s all based on statistics and how many claims are made because of this reason. For example, if the area you’re in has seen an increase in claims made because of garage-related accidents then this could impact your price. It is worth comparing quotes for driveway and garage parking if you have both options, and working out which is more convenient.
Myth #5. Paying off your annual car insurance policy in one lump sum is always cheaper
TRUE – It can be difficult to find the money to pay for a year’s cover in one go, but paying it all upfront usually works out much cheaper than paying in monthly instalments.
While it might seem sensible to spread the cost of the insurance policy with monthly payments, it almost always costs more in the long run as there will usually be fees and/or interest to pay your car insurance in instalments.
Myth #6. Putting your insurance in your parents’ name is a clever way to save money
FALSE – It may seem like an innocent way to reduce the financial burden on a young family member who has just started driving, this practice is known as ‘fronting’ and is certainly illegal.
It is fine for a parent to be a named (secondary) driver on a young driver’s car insurance policy, and some insurers offer a discount for doing so, but instances where a parent is named as the main policyholder can lead to quite serious consequences, including penalty points, disqualification, and fines of up to £5,000 if the case reaches the courts.
Myth #7. You shouldn’t let your policy automatically renew each year
TRUE – While shopping around is still worthwhile, insurers are no longer allowed to charge renewing customers more than an equivalent new customer buying the same policy directly from them. That means the old “loyalty penalty” has largely disappeared, although another insurer may still offer a cheaper quote.
Even if you stay with your existing insurer, it’s still worth calling to check whether they can improve the renewal quote or remove unnecessary extras.
Myth #8. Opting for no claims bonus protection will stop my premium rising
FALSE – You won’t lose your no claims bonus if you make a claim and you’ve paid to protect it, but your premium could still rise as if your insurer considers you a higher risk after the accident.
Your no claims bonus is a discount that is applied to your car insurance premium, but if your premium rises you will still end up paying more. This discount also won’t protect you from general cost increases that your insurer gives to every policyholder.
Also, keep in mind that there’s a limit to no claims bonus protection – if you make more than one claim in a year, you might find that your insurer still removes a year or two’s from the bonus you have accumulated.
Myth #9. You won’t have to pay the excess if the accident wasn’t your fault
FALSE – Unfortunately, the truth is that if your car is hit by an uninsured driver or falls victim to a hit-and-run incident, you will still be required to pay the excess – at least initially. This also applies if you find your car damaged in a car park.
Insurers often refund the excess if they later recover costs from the third party, and some uninsured driver claims can be dealt with through the Motor Insurers’ Bureau.
Myth #10. You don’t need car insurance for a short journey
FALSE – No matter how short the journey is, you must be insured. Under no circumstance can you drive – or even park – on a public road without your car being covered by a minimum of third-party insurance.
More car insurance advice from The Car Expert:
This article was originally published in February 2023, before being updated in July 2026.
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