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Myths and Facts

MYTH: Your car insurance will cover you for the amount you paid for your vehicle.

FACT: If your car is stolen or damaged beyond repair, your insurance company will normally pay-out what it costs to replace your vehicle with a similar model today (rather than the amount you paid for it). This will normally be less, as most vehicles lose value with age. However some insurers will offer a new car replacement within the first year of a policy on a brand new car.


MYTH: The European Health Insurance Card (EHIC) is a substitute for travel insurance. 

FACT: While the EHIC may entitle you to basic state-provided medical treatment (in the countries that participate in the scheme) it does not provide full NHS coverage whilst abroad or pay for emergency repatriation to the UK. You need travel insurance for these. Try our online Quote and Buy facility here...


MYTH: Searching online will always give you the best insurance option.

FACT: Online comparison is certainly a quick and easy way to search a wide variety of policy options. However, it’s important to compare insurance policies by the level of cover they provide as well as by their price i.e. on a “like for like” basis. Make sure that courtesy car cover is included, windscreen cover is included, the amount of excess is the same and your bonus is protected if required. Many other items are excluded in “online” quotes and are only available as “add-ons” after the initial quote has been calculated.  At Castle Insurance, our quote will include all of your requirements with no hidden extras.


MYTH: Your valuable items will automatically be covered under your home contents insurance.

FACT: Most home contents insurance will specify a maximum level of cover for any single item covered by the policy (e.g. £1,500) If you have a valuable item (i.e. jewellery, watches, antiques or collections) that’s worth more than this maximum amount – you’ll need extra or specialist cover to protect it. When applying for home contents insurance, you’ll also need to specify if you want your valuable items to be insured when taken outside the home.


MYTH:  Some insurance policies contain an ‘Act of God’ exclusion

FACT: There is no such exclusion in insurance policies. The policy details will carefully outline exactly what events you are covered for as well as  any eventualities you are not covered for.


MYTH: You don't have to tell your insurer if you have fewer than six points on your licence

FACT: You do. Your motor policy is invalid if you fail to disclose information about your driving history, including points on the licence or a ban. Insurers talk to one another to combat fraud of this type. When a claim is made, Insurers investigate that the information disclosed on the policy is accurate.  This usually involves contacting the DVLA, accessing shared databases or calling previous insurers. If a policyholder has withheld information, this will be discovered. Most insurers will ask about convictions within the last 5 years and some convictions will need to be disclosed for 10 years and up.


MYTH. I must be given a courtesy car of an equivalent type and size to my own car 

FACT: Unless you were given the option - and paid the extra premium - you have no control over the type of courtesy car you are given.


MYTH: You should bump up your claim by 10 per cent as that's what the insurer will knock you down by.

FACT: This is fraud and could land you in all sorts of trouble. The myth stems from the fact that insurers have relationships with particular retailers and the size of their orders lets them negotiate a discount - say 15 per cent - unless you can prove the insurer's chosen retailer does not offer goods of a similar quality to the ones you are replacing.


MYTH: My fully comprehensive insurance covers me to drive any car

FACT:  Most policies will only provide this benefit in certain circumstances and may not offer it for a number of reasons. If you are eligible for this type of cover (usually policyholders over 25 years of age) Most private car polices include cover to drive other cars, as long as the policyholder has the owner's permission. However, it's important to remember that your cover will be third party only whilst driving the other car. This means that if you were to drive the car and crash it, the insurance would only cover the cost of the damage or injury to the other party, and not the damage to the car you were driving. It could therefore result in a substantial bill - for you. This cover usually only applies to private car policies and not to commercial vehicle policies.


MYTH: Charging a colleague petrol money for a lift to work might invalidate my insurance

FACT: As long as you are not making a profit from providing a lift your insurance should be perfectly valid. However, you need to ensure that your car is covered for commuting. Most policies have social, domestic and pleasure use, some will have commuting too. However, if this is all you have you cannot use your car in connection with work, such as going to appointments or making deliveries. For this you will require extra cover.


MYTH: I don’t need to tell my car insurer about convictions or claims that occurred while driving my motorbike/van/lorry

FACT:  Every insurer is different, but most will expect you to disclose all motoring convictions to them, no matter what vehicle you were driving at the time. It is always the best to disclose all information to your insurer, no matter if you feel it might be irrelevant or even if your previous insurer did not wish to know about it. The simple fact is that all insurers are different and apply different criteria to what they feel is relevant or not.


MYTH: Standard home insurance covers accidental damage

FACT: You usually have to pay extra for accidental damage insurance to all of your property – some insurers will provide accidental damage to certain items on a standard policy. E.g. TV’s. Accidental damage is defined by most insurers as ‘damage that occurs suddenly as a result of an unexpected and non-deliberate action. This means it won’t cover general wear and tear or mechanical failure.


MYTH: You should insure your home for its full market value

FACT: Your buildings insurance sum insured must reflect the full rebuilding cost of your home, not its market value. The ABI has a rebuilding calculator which can help -


MYTH: I’m too small for business insurance

FACT: Research highlights that almost a third of home business operators believe they don’t need insurance because their business isn’t big enough. However, the size of the business doesn’t reduce your liabilities if something goes wrong and a small company could face big bills in the event of damage to stock/equipment or business interruption. The other aspect to bear in mind is clients visiting your home. If a customer is injured, or has their property damaged during a visit, public liability insurance is needed to protect you – and them!


MYTH: My business is covered by my home insurance

FACT: Our research suggested that people working from home believe their commercial activities are covered under their home insurance policy. This is not normally the case. Some Home policies may give an element of business cover and there are bespoke “homeworkers” policies to cover you whilst working from home.  They are not normally expensive policies but you would need to have the correct policy in place.  Contact us for further information.


MYTH: It's fine to insure your car in a parent's name

FACT: Insurance can be really expensive for a new driver, so many think about insuring their car in a parent's name and adding themselves as a named driver - a practice known as 'fronting'. A surprising number of people believe this is a simple way to bring down the price of insurance for a young motorist. In fact, fronting invalidates an insurance agreement, so if you're in an accident then you could find yourself without cover.



The UK driving test only has a 50.2% pass rate - Source


There are around 35,760,901 vehicles currently on UK roads, which is roughly one car for every two people. - Source SMMT


Our favourite car colour is silver. There were 7,996,383 silver cars on the roads in 2012. Source SMMT


Almost one in six UK motorists has been caught speeding in the last five years. Source LV


92% of us consider ourselves good drivers. But 65% of us admit to breaking the 70mph speed limit - Source RAC



Top Insurance Tips


1. TOP TIP: Disclosure is key. Whether it's previous accidents or claims, or a recent speeding fine, full and early disclosure avoids any possible problems later. Holding back something that is relevant will be a false economy if it means your claim is later turned down. If in doubt, always tell your insurer.


2. Your home should be insured for its rebuilding cost, not its market value. Your buildings insurance sum insured must reflect the full rebuilding cost of your home, not its market value. The ABI has a rebuilding calculator which can help -


3. Home improvements should be reflected in the sum insured. The extra value from improvements such as house extensions, new kitchens, bathrooms should be included when renewing your home insurance as they will increase rebuilding cost and therefore the sum insured.


4. Update contents cover. Always keep a check on the value of contents, especially as a home may now contain several flat screen TVs, laptops and music players. If you get new expensive goods, ring your insurer to add it to your policy.