No claims bonus
You get one years no claims for every year that you do not claim against your car insurance. Also referred to as a 'No Claims Discount', typically if you build up 5 years NCB this can reduce your car insurance by 60-75% dependant on the insurance company.
Excess - This is the amount of money that you will pay your insurers in the event of a claim. Voluntary Excess allows you to top up this amount and the higher the voluntary excess the cheaper the car insurance premium will be.
Fully Comprehensive - This is the highest level of car insurance cover. It includes what is covered under TPFT (see below), but in the event of an accident which was your fault (even if no-one else was involved) the insurance company will pay to repair or replace your own car.
Third Party only
This car insurance policy will only pay out to repair the other persons car in the event of an accident that was your fault. It will not pay out for repairing or replacing your vehicle. This policy does not cover you for fire or theft of the car. This is the cheapest type of insurance policy available.
Car insurance tips
1. Shop around for cheaper companies.
2. Drive a cheap car with a small engine. This is important especially if you are a young driver and perhaps it is your first car. It is tempting to buy a nippy motor and stretch yourself to afford the car insurance, but it is better in the long run if you get yourself a car with a small engine and has a low insurance group. The insurance will be lower and you will be able to build up your no-claims bonus.
3. If you have recently passed your driving test, look into whether it's worth going through the Pass Plus training programme to qualify for car insurance discounts. Not all insurers give discounts for Pass Plus drivers, but the number that do is increasing all the time.
4. Consider using the internet to get quotes and buy your insurance online. Most companies offer a 10% discount for buying online instead of over the telephone.
5. Choose to pay a higher excess in the event of an insurance claim. This is the amount that you will agree to pay in the event of an accident i.e. an insurance policy with a £500 excess will be less than with a £100 excess, however if you have an accident that is your fault then you will have to pay the first £500 of the claim.
6. If your vehicle is not fitted with an approved alarm or immobiliser, compare car insurance quotes with and without one fitted.
7. Limiting the distance you drive .
