Steve Ramsey, motor insurance specialist, warns that drivers who misinterpret their policy could be at risk of more than just rejected claims.
Three myths leaving motorists exposed
From fully comprehensive clarity to policy wording exclusions, Steve shares expert insight into the most common misconceptions letting motorists down:
1. “Fully comprehensive cover means you can drive other cars”
Many drivers wrongly assume that fully comprehensive cover means you can drive other cars (DOC). But this isn’t always the case - and there are often strict conditions.
According to Steve, DOC cover is included on a case-by-case basis and only 2% of policies offer DOC cover as standard for named drivers. And even if you have DOC in your policy, it usually only covers you on a third-party basis.
If you have DOC cover, it’s usually stated on your schedule of insurance, not in the policy booklet. Rather than assuming cover, if you need to drive someone else’s car, you could look into temporary car insurance or get added to their insurance as a named driver.
According to Steve: “If a friend drives your car without adequate cover and they get into a collision with a third-party, the costs can be significant. The third-party damage would likely be covered by your insurer, but the policyholder would need to reimburse these costs. Damage to your own car is unlikely to be covered, while your friend could be prosecuted for driving without insurance.”
2. “Personal belongings in my car are automatically covered by insurance”
A critical error many motorists make is assuming that their car insurance will kick in if their phone, handbag or laptop is swiped from the back seat. But the reality is that 70% of comprehensive policies have a £500 cover limit.
This means if your £1,000 laptop gets stolen from your car, insurance might only cover half of the cost to replace it. The gap widens further if an entire bag is taken. A laptop, phone and sunglasses together could easily exceed £2,000 in value, leaving motorists significantly short of what they need to replace everything.
Items like money, credit cards, personal documents and business tools are typically excluded from personal belongings cover entirely.
Steve continues: “The level of cover also depends on your specific policy. According to Defaqto, 87% of comprehensive car insurance policies include personal belongings as standard, compared to only 10% of third party, fire and theft (TPFT). You don’t need to worry about commuting vs social cover”
Few drivers realise the critical difference between social and commuting cover, but the consequences can be severe. Around 50% of drivers opt for ‘social only cover’, potentially unaware that then using their car for commuting could invalidate their entire policy.
Not understanding this distinction could leave motorists uninsured for their journey to work, and liable for a fine and points on their driving licence. Driving uninsured, even unknowingly, carries a fixed penalty of £300 and six points on your licence. Steve shares that for insurance purposes, commuting is classed as regular travel to and from a single place of work.
Beat the misconceptions: check your cover
Steve concludes: “When it comes to insurance products, never assume. After all, asking the question could be the difference between a policy payout and an astronomical bill in your name.”
Go.Compare shares three top tips to motorists to avoid getting caught out:
Always read both your policy schedule and the booklet.
Identify what is and isn’t covered before you take out the insurance.
Understand policy wording around DOC, personal belongings and commuting cover.
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