Question 1

What are the main types of car insurance?

Accepted Answer

The main cover levels are third party, third party fire and theft, and comprehensive. Third party cover helps with damage or injury you cause to someone else. Third party fire and theft adds cover for some risks to your own vehicle. Comprehensive cover can also include damage to your vehicle, subject to the policy terms and exclusions.

Question 2

What does third party cover mean?

Accepted Answer

Third party cover helps with damage or injury you cause to someone else. The exact protection depends on the policy wording, so check the terms rather than assuming that every situation is covered.

Question 3

What is third party, fire and theft cover?

Accepted Answer

Third party, fire and theft adds cover for some risks to the driver’s own vehicle as well as third party cover. The risks covered and any exclusions are set out in the individual policy terms.

Question 4

What does comprehensive cover include?

Accepted Answer

Comprehensive cover can also include damage to the insured vehicle, subject to the policy terms and exclusions. The label does not mean every situation is covered, so read the policy wording and schedule to understand the actual protection provided.

Question 5

What is an insurance excess?

Accepted Answer

An excess is the amount a driver may need to pay towards an eligible claim. It can include compulsory and voluntary parts, and the amount that applies depends on the policy terms.

Question 6

What is the difference between compulsory and voluntary excess?

Accepted Answer

A compulsory excess is set by the insurer and normally applies when the claim is covered, subject to the policy wording. A voluntary excess is an amount the driver chooses to add. Choosing one can affect the quoted premium, but it also means taking on more of the cost if a claim is made.

Question 7

How does an excess affect a claim?

Accepted Answer

If a claim is accepted, the excess is generally paid first from the covered repair or loss, with the policy responding to the remaining eligible amount. For example, if the total excess is £350, a driver would generally pay the first £350. The exact calculation depends on the type of claim and the policy terms. Some claims or types of damage may have a separate excess.

Question 8

How should I choose a voluntary excess?

Accepted Answer

Consider whether you could comfortably pay the full compulsory and voluntary amounts at short notice. Compare the total cost of the policy as well as the excess, and read the policy wording for limits, exclusions and claim-specific amounts.

Question 9

What should I check before buying or renewing cover?

Accepted Answer

Check that the driver, vehicle, address, estimated mileage and use of the car are described accurately. Compare the cover, excess, exclusions and optional extras, rather than looking only at the headline price.

Question 10

What is telematics or black-box insurance?

Accepted Answer

Telematics insurance, sometimes called black-box insurance, may use a device fitted in the vehicle, a connected device or a mobile app to collect driving information. Check what data is collected, why it is used, how long it is kept, what happens if a device stops working and whether there are rules about using or carrying a phone while driving. Suitability depends on the individual policy, driver and vehicle.

Motor insurance, in plain English.

Policy types

Excesses

Choosing cover