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. 😊