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...🔮
A NCB can be used on multiple policies.
Truth 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. See our previous blog post for more information.
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 head over to our Community forum, or drop our customer support team a message in the app. 😊