There are many car insurance myths, misunderstandings and misconceptions. Ever heard that red cars are more likely to get into an accident or that white vehicles are more visible on the road? Does this mean that having a red or white car will affect your insurance premium? We’re unpacking some of the misconceptions surrounding vehicle insurance (some myths are a little weirder than you think).
Some myths have a little truth to them while others are almost laughable. It’s important to bust the false car insurance myths and be aware of the ones that prove true as these could have financial implications for you. As a first-time car buyer especially, it can be tricky to separate fact from fiction.
Advice for first-time buyers
Choosing the perfect vehicle is an exciting time but finding the perfect insurer and insurance premium isn’t always as easy.
Having an insurance checklist in place when purchasing a vehicle is a great starting point. It’s a significant asset and you’re going to want to protect your new “baby”. Make sure you have a budget in mind, do a little bit of research and think about the type of cover you want.
When deciding on insurance for your vehicle, it is important that your decisions aren’t solely based on the insurance premiums. You should take the policy terms into consideration, including what the vehicle is covered for, applicable exclusions, driver restrictions as well as the first amount payable by you in the event of loss or damage.
Get the answers to your burning questions about Oneplan’s car insurance: Five questions you should be asking your car insurance agent
Like with almost anything, there are some misconceptions surrounding vehicle insurance. Let’s take a look at a few of them.
Car insurance myths
To ensure that motorists are covered in instances where something could go wrong, we’re busting the following car insurance myths:
Car Insurance Myth 1: Colour of your car plays a major role
This varies from insurer to insurer. Statistics have shown that red and black vehicles have a higher risk of accident damage than white vehicles. This is due to visibility, but this isn’t a confirmed rule, which is why some insurers choose not to consider colour as a factor when calculating your premium.
Car Insurance Myth 2: It costs more to be insured as you get older
This is completely false.
It actually works in reverse. More often than not, the younger you are, the higher your premium. Younger drivers, who have had their licences for a shorter period, are considered higher risk due to less experience, which can result in higher premiums.
Car Insurance Myth 3: If another person drives your car, their insurance will cover them
Another fake fact.
In most cases, the other person’s insurance would cover third-party damage caused in the accident, while your vehicle’s insurer would cover damage to your car.
However, if the person driving your car is not listed on your policy, your insurer may not cover the damage. Always check your policy and confirm with your insurer.
Car Insurance Myth 4: Personal motor insurance covers business use
False.
You have the option to insure your vehicle for private use or business use. Insurers will only allow business use if certain criteria are met.
Car Insurance Myth 5: Insurance will always pay out for remote jamming
This depends on the insurer and their policy.
Most insurers exclude remote jamming unless there is evidence of forcible and violent entry into the vehicle. This is because it can be difficult to prove whether the car was jammed or simply left unlocked.
Check with your insurer to understand your cover.
Car Insurance Myth 6: You are always covered for pothole damage
This depends on the type of damage, how it occurred and your insurer’s policy.
You may also be able to claim from SANRAL (The South African National Roads Agency) if your car is damaged by a pothole.
Car Insurance Myth 7: Men pay more than women for car insurance
This is often true.
Many insurers consider females to have a lower risk profile. However, your premium is ultimately based on your individual risk profile, so this can vary from person to person.
Read: Keep Your Car Safe and Park It in a Garage! (And How This Could Save You Money!)
The best thing you can do as a motorist is to ensure that you’ve done thorough research to find a policy that suits both your needs and your budget.
Feel free to chat with us at Oneplan. We’re here for you every step of the way and we’ll make sure our policies are easy to understand and give you the cover you’re looking for, so that you don’t have to get caught up in car insurance myths.
Yours in comprehensive car insurance,
Oneplan
