Car Insurance Explained
Covering the different kinds of motor insurance available, and some of the extra features you might want to have in your policy
Extra Features
So those are the basic kinds of insurance, but policies from different insurers can offer different extra features that you can take into account when choosing who to insure with. This is especially true of comprehensive policies, which can have quite a few added extras.
When comparing policies you should bear in mind that nothing is 'free', no matter what the advertisments say. If you don't need a specific feature, you might be able to get a lower price by getting a policy that doesn't offer unnecessary frills.
No Claim Bonus
If your insurance cover includes a No Claims Bonus, then for every insured year that you don't make a claim, your premiums will be reduced by a percentage, to reflect the fact that you're showing you're not a big risk to your insurance company. The discount will grow year by year until you hit the upper limit available, which is generally 60-70% depending on your insurer. If you make a claim, your bonus will usually be reduced, either back to it's previous level, or even cancelled completely.
Some policies offer a 'no claims bonus for life' option which locks your bonus at its current level, even if you make a claim. This can be a good option if you've already reached a maximum discount as this will be protected no matter what happens in the future.
Finally on this topic, many policies will allow you to transfer over your discount level built up on a policy from a different company. You'd obviously be less likely to switch insurance companies if it meant losing your discount, so this will be an option in almost all cases.
Named Drivers, Named Cars
Your insurance will be cheaper if you insure a specific driver for driving a specific car, but options are available that let you insure a driver for driving any car. This means that in an emergency you can drive someone else's car (with permission of course) without having to worry whether the car is insured for any driver.
You can also add named drivers onto your policy, so that they will be covered when driving your car. This is popular with parents, who often add their newly-licenced children to their policies.
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