MOTOR INSURANCE GUIDE

Our handy guide to the things that appear in most motor insurance policies

Car Clubs

Claims

A claim is when you tell the insurance company that you are requesting a payment under the terms of your policy. Claims are broadly categorised as "fault" (where you're to blame) or "no fault" (where a third party is to blame).

Excess

Indemnity

An insurance contract, coverage, premiums and excesses.

Institute of Advanced Motorists

Policy

An insurance contract, coverage, premiums and excesses.

Premium

Total cost of obtaining insurance cover, paid in one sum or in instalments, may or may not include fees.

Legal Expenses

Cover providing legal services or reimbursement for specified legal expenses.

Mirrored or Introductory Bonus

Some policies will offer you an introductory discount based on another policy you hold by mirroring your no claims bonus. So if you've got a private car policy with 5 years and you buy a van, they might give you the same number of year's no claims on your van as you have on your car (note - same years, not same discount).

Modifications

No Claims Bonus or No Claims Discount (NCB / NCD)

This is the amount of time you've clocked up on an insurance policy without making a claim that your insurer defines as affecting your NCB (not all claims will - windscreen claims are sometimes excluded for example). NCB has a huge affect on the discount you will get - when you see TV ads offering "up to 50% discount", this is probably what they're talking about.