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Catch up with the latest press releases from LV=

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LV= warns motorists about breaking the law

Press release: 14/06/2008

Research by car insurer LV= has found that over half of all motorists* do not understand their insurance cover and, as a result, are breaking the law.

One of the most popular misconceptions amongst motorists is that if you have comprehensive cover anyone can drive your car with 51%* of people believing this to be the case. In fact, this is not true and could result in a conviction for uninsured driving and a hefty fine.

LV= has compiled the following list of common insurance misconceptions as a warning to motorists to ensure they understand their insurance cover.

FICTION - Anybody with a driving licence is able to drive your car if you have comprehensive cover.
FACT - If you lend your car to someone else, not named on your policy, you need to ensure they have comprehensive insurance in their own name that includes the ‘driving other cars' policy benefit, as otherwise they will be uninsured. Even if they do have comprehensive insurance they will still only be covered for third party only and you will not be covered for any damage they do to your vehicle. If they do not have insurance in their name, they could be convicted of driving uninsured and receive up to six points and a significant fine.

FICTION – Unless I am at fault in an accident my no claims discount will remain the same.
FACT - It's important to remember it is a ‘no claim discount' not a ‘no blame discount' so if you have to make a claim, unless you had an accident and the other party has admitted liability, your discount will be affected. An example of this would be if your car is stolen or if it hit by another motorist whilst parked and they did not leave their details.

FICTION - Third party car insurance is much cheaper than comprehensive insurance.
FACT - Drivers who take out third party cover are more likely to make a claim on their insurance than drivers who take out comprehensive cover despite the fact they wouldn't be covered for damage to their car if they were at fault. This pushes up the cost of third party insurance and often the difference between the two policies is minimal.

FICTION - Restricting your car insurance policy to just yourself will make it cheaper.
FACT - Adding a spouse or partner often actually reduces the premium. This is because married people or those living with a partner are statistically less likely to be involved in an accident.

FICTION – If a car is paid for with a personal loan the insurance will cover the cost of paying back the loan if the car is written off in an accident.
FACT - Your insurance will pay out for the value of the car at the time of the accident, however because cars depreciate quickly this maybe substantially less than the amount of a loan taken out to pay for the vehicle.

FICTION - If your car is a write off following an accident and you decide not to buy another car with the money you claim you will get back the remaining premium for the rest of the year.
FACT - A car insurance policy is agreed at the outset for a period of 12 months and once you have claimed the insurer has effectively fulfilled their part of the contract so no premium will be returned. For that 12 month period the insurer guarantees to pay any claim you make for the price agreed at the outset. However, if you decide to get a new car the premium will only increase or decrease if the car is in a different insurance group (regardless of how many claims you have made) and any no claims bonus will remain in place until the end of the insurance contract.

FICTION - Courtesy cars come free with most car insurance policies and are provided in the event of the car being written off or if the car is stolen.
FACT - Many policies offer a ‘free courtesy car' but it is often provided by the garages on their network and you can only have it if your car is being repaired and not if it is written off or stolen. Others offer a courtesy car as an optional extra and you are guaranteed the car in the event of any claim - if you couldn't manage without your car it is best to go for this option.

* Opinium Research LLP carried out an online poll of 2,002 British adults between 6 and 10 June