Common misconceptions about car insurance

There are loads of myths out there when it comes to car insurance. Let's separate the facts from the fiction.
By Team member, 16/08/2017
1 minute read

This blog post shall debunk common misconceptions about car insurance. Insurance is a complex industry, and as a result, many people find themselves confused as to what is true, and what is false... 🔮

An NCB can be used on multiple policies

Truth: only one NCB can only be used on one policy at a time.

All car insurance policies include commuting cover

Truth: many car insurance policies do not cover you for commuting. Consequently, many drivers have found themselves caught out when their claim is denied. Don't worry though, our short-term policies include business use, and all Cuvva driving policies include commuting. 😇

Entering a lower vehicle value will automatically lead to lower pricing

Truth: often those who drive lower value vehicles are more reckless, and care less about the vehicle they are driving. As a result of this, the insurance policy is often more expensive.

Third party insurance is always cheaper than fully comprehensive insurance

Truth: often third party is often not cheaper than fully comprehensive. This is because a larger number of higher risk drivers, opt for third party policies.

The motor insurance industry makes profit on policies

Truth: the motor insurance industry last made an underwriting profit in 1993. 😮 See here for more detail.

Incidents where you are not at fault, or have a "no fault" incident, will not increase your premium

Truth: insurers have found that individuals who are involved in an incident are more likely to make claims themselves, so unfair as it may seem, your premium can increase as a result of an incident - even if there is no claim.

It is illegal to get insured on a car that a family or friend is already insured on

Truth: this is legal, and Cuvva itself is not double insurance. We'll talk about the legalities and complexities of double insurance in a future blog post.

I hope this clears a few things up! If you have any questions, then you can drop our customer support team a message in the app. 😊

Team member