Four insurance assumptions that could leave you without cover

Many insurance claims begin with the same phrase: "I thought I was covered for that." After nearly 50 years helping islanders protect their homes, vehicles and businesses, we've seen how common misconceptions can lead to gaps in cover. Here are four of the misconceptions we encounter most often.

1. "I have comprehensive car insurance, so I can drive any car."

This is one of the biggest insurance misconceptions around. Many drivers assume that having comprehensive cover automatically means they can drive someone else's vehicle. In reality, that's not always the case.

Some policies may include a ‘Driving Other Cars’ extension, while others don't. Even where it exists, it can come with restrictions and conditions.

Before borrowing a friend or family member's vehicle, it's worth checking exactly what your policy covers. A quick look at your documents now could save a difficult conversation later.

2. "My premium shouldn't go up if I haven't claimed"

It's understandable to think that no claims should mean no increase in premium. While your personal claims history is important, it's only one of the factors insurers consider.

The cost of vehicle repairs, increasing rebuild costs, severe weather events, theft trends and rising claims costs across the market can all influence premiums, even if you've never made a claim yourself.

In many cases, the cost of insurance may change even when nothing about your own circumstances has.

3. "My home's market value is the same as its rebuild cost"

Not necessarily. The market value of your property reflects what someone might pay to buy it. The rebuild cost is the amount it could cost to completely rebuild your home following a major loss.

The two figures can be very different. If you insure your property using the wrong value, you could find yourself underinsured when making a claim.

Many homeowners are surprised to discover that rebuilding a property can cost significantly more (or sometimes less) than its market value.

Taking time to check your sums insured can help ensure your property is protected if the unexpected happens.

4. "Insurance is insurance – the cheapest policy will do"

When comparing quotes, it's natural to focus on price. But the cheapest policy isn't always the one that offers the protection you need.

Policies can vary significantly in what they cover, their limits, exclusions and excesses. Two policies that appear similar at first glance may provide very different levels of protection.

The real value of insurance isn't discovered when you buy it, it's discovered when you need to make a claim. That's why understanding what's included is every bit as important as the premium you pay.

Feeling confident about your cover

Insurance isn't just about having a policy, it's about understanding what it covers. Many of the biggest insurance mistakes come from assumptions rather than the policy itself. Reviewing your cover regularly can help ensure it still meets your needs and avoid unwelcome surprises if you need to make a claim.

If you're unsure about any aspect of your insurance, our team is here to help explain your cover and answer any questions.