4 Car Insurance Traps To Avoid

Aug 15, 2023 | Car

Car insurance makes a lot of sense when you consider the increase in car theft, hi-jackings, and incidents on our roads.

That said, it can be a bit of a grudge purchase, with thousands of motorists feeling pretty resentful over having to fork out for cover. Of course, these feelings melt away when something goes wrong and you realise that your car insurance policy is going to foot the bill for some nasty repairs or to replace your vehicle altogether.

The key is to avoid the common pitfalls around car insurance. Traps that could make your policy too expensive or get your claims rejected.

To help you out, here are the 4 car insurance traps to avoid.

1. Increasing Your Car Insurance Excess

A basic excess is part and parcel of a car insurance policy. Essentially, this is a once-off amount of money that you pay anytime you claim. Even if the reason why you’re claiming isn’t your fault. Some insurers will give you the option to increase or decrease your excess amount in order to influence your monthly premium.

It’s sometimes marketed as a good way to decrease your car insurance premium, which it is. Don’t get us wrong, increasing your excess can help make your premium more affordable so that you can continue to meet your monthly payments.

The issue is when people increase their excess to an amount that they can’t afford. Seeing as the excess is something that you can’t avoid, make sure you choose an amount you can reasonably expect to pay without having to borrow from family or take out a loan.

2. Adding All The Extras

It’s tempting to go all out and add extras to your policy so that you feel like you’ve got a better level of cover. This isn’t to say that the extras aren’t useful or won’t add value to your policy.

But you need to carefully weigh up the cost of all these add-ons versus the risk that they’re covering.

Consider opting for add-ons that give you benefits in exchange for lower fees and excesses or add-ons that help you keep your car in the best condition possible. Always make sure you familiarise yourself with the cover you have and what you are paying for.  Then you will also know when you may have a valid claim. 

3. Not Calling The Police

If your car is involved in an accident, even a very mini-minor fender bender, you need to report the incident to the police. Too many people fall into the trap of assuming that because no one was injured and no property was destroyed, no official call to the blue and yellow needs to be made.

In order for your claim to be lodged, you need to report the incident and get a case number.

4. Unspecified Drivers And Other Rules

Some car insurance policies will only cover the regular driver of your vehicle, as named on your policy. Then again, other insurers are less fussy and will cover the regular driver, the regular driver’s spouse, and someone else who doesn’t drive the vehicle regularly and who just happened to have an accident during that one-off time they were behind the wheel.

To avoid this trap, don’t make any assumptions. Your insurance claim could be rejected for any number of reasons, but typically, claims are rejected because the policyholder (that’s you) didn’t know the terms and conditions of their cover.

Feel informed?

We hope that this information will help you avoid potential car insurance pitfalls, help you save on your monthly costs, and make a more informed decision.

Don’t forget that AA Inform is home to a range of useful tools and resources. Not only can you use our website to calculate your fuel consumption for specific trips but you can also check out AA Insurance Supermarket to shop around and compare up to 7 car insurance quotes from reputable insurance providers.

This way, you can make absolutely sure that you’re securing the best deal you can on your car insurance.

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