While automotive insurance may be one of the UK’s most in-demand industries, there is no doubt that it is poised for a major evolution over the course of the next decade and beyond. After all, the emergence of automated cars is inevitable, while the fact that an estimated 90% of all auto mobile accidents are caused by human error means that technological advancement will change the service that insurers deliver for car insurance beyond all recognition in the future.
Even now, the industry is cloaked in misconceptions and misunderstandings, many of which cloud the judgement of customers across the board. Here are three of the most prominent:
Annual Car Insurance Policies Do Not Cover the Operation of Other Vehicles
If you ask most consumers on the street, they will most likely tell you that annual insurance polices are relatively flexible and cover you in instances when you drive vehicles that belong to others (or hire cars).
This is a huge misconception, however, and one that can cost you huge sums of money in the event of an accident. If you hire a car, for example, you will need to sign a separate policy that protects both you and the lease company, while you will not be covered when driving a friend’s vehicle unless they have added you onto their policy as a second driver.
You can also negate this issue by securing temporary car insurance from providers like Day Insure, but the most important thing is to make sure that you are covered before getting behind the wheel.
Annual Car Insurance Policies Do Not Allow Trips to Any Location
If you are commuter, the chances are that your insurance reflects this. Contrary to what you may believe, however, this type of coverage does not cover business trips to any location, as there are usually restrictions relating to distance, fuel consumption and the number of destinations that you can visit.
You therefore need to be careful when including commuting as part of your annual coverage, as the terms of this insurance may not be as universal or accommodating as your require. These may be changed, of course, but you need to ask first and be prepared to pay a higher premium.
Annual Car Insurance Will Cover Trips Abroad
This is arguably one of the most common misconceptions, as many drivers believe that their existing coverage applies automatically whether they are at home or abroad. This is not the case, however, as taking your vehicle out of the country may invalidate your policy and leave you unprotected in the event of an accident.
While some policies do include driving in Europe, the majority do not feature this as a standard policy item. You therefore need to check with your insurer before travelling, while be precise about the length of your trip and precise destination when arranging additional, tailored coverage.