Car Insurance | Don’t Let The Myths About Car Insurance Drive You Off The Road

September 20, 2010 – 1:34 am

Car insurance premiums are climbing at their fastest rate ever, according to the AA’s latest Insurance Price Index. The price of a typical comprehensive car insurance premium, currently about 704, soared by a massive 30.9 per cent over the past 12 months.

It’s leading to more people than ever illegally driving without insurance, risking having their car seized by police and crushed or sold if it is not claimed within 14 days. Uninsured drivers also face a 200 fixed penalty, six penalty points and 150 car recovery charges. And they will only be able to get their car back if they can prove they have bought valid insurance.

With some 160 people killed every year by uninsured drivers, police are cracking down on them. By using Automatic Number Plate Recognition (ANPR) technology, which is linked to information on the Motor Insurance Database (MID) – the central record of 34 million insured vehicles in the UK – police are able to detect and seize uninsured vehicles at the roadside.

In fact police report that 180,000 vehicles were seized last year, taking the total to more than 600,000 since laws were introduced in 2005. Even more good news is the fact that last year 194,000 people were convicted in court for uninsured driving – that is one conviction every three minutes.

But the insurance industry says that some people fail to get adequate cover because they’re put off by some of the insurance myths floating around. Some are ridiculous, while others sound plausible. Here we examine the most common misconceptions people have about car insurance.

Red cars cost more to insure

Many people believe that insurers automatically associate red with youth and aggressive driving but there really is no truth in that. In fact the AA says that there is no statistical evidence at all that a red car will increase your insurance premium.

Insurers use a variety of factors to calculate the cost of cover – such as the make and model of the car and its age and engine size, as well as taking into account your driving record and location. They don’t take into account the colour of the car.

I will be covered if my car is stolen or vandalised

You will be covered, but

Click here to view rest of article from original site