More than likely just another myth. the truth is more like previous history will reflect any payout should a claim be made, which is entirely different.
My astra is insured with the same company for the last 6 years, in which time it has been "written off" 3 times, cat d and been paid out on each claim the std market value, for example, so insuring it/them is not a problem, the last assessor to look at it who wrote it off, needed me to point out the damage, it was that bad, sorry my bad, it's now 4 times, I forgot last december when it was written off by some dozy old bint who couldn't see a white car in broad daylight in front of her, she hit the wing and broke the indicator, dented wing, it's only a old l reg astra, repairs not worthwhile.
A time before that it was written off due to a hit on the rear 1/4 that made a dent about 3-4mm deep and about 1" round and scuffed the bumper, body shop quoted for a new rear 1/4 and bumper, it was the insurers nominated repairer, I forgot all about the damage as it's so slight, but was paid £600 odd for the car damage, with the condition I keep the salvage.
The insures are fully aware of this, as they had update all the time, the nominated repairers were Gladwins, who frankly I wouldn't let loose with a colouring book, let alone a car!!
tabetha