On this page we answer the questions customers most frequently ask us about motor insurance. Click on any of the questions to go straight to the relevant answer. If you don't find the answer to your question here please contact us, we'll be happy to answer it in person.

The rules governing the answers to the questions below vary from insurer to insurer but the answers have been compiled by reference to the general approach of most. The answers given are a general guide only. You should always read your policy and, if you have any doubt at all, check with us.

What is a No Claims Bonus?

Insurance Companies reward those policyholders who remain claim free with a discount when they reach the anniversary, or renewal, of their policy. Typically the bonus starts at 33% discount after year one, 40% after year two, 50% after year three and rises to a maximum of 60% or 65%. If you make a claim - even if the cause is not your fault - the insurance company will reduce your discount by two years. So, for example, if you make a claim when you have maximum bonus your discount will be 'stepped back' to 40% .

My Insurer Has Reduced My No Claims Bonus But The Accident Wasn't My Fault?

It doesn't matter ! Remember it is a no claims bonus not a no blame bonus. If you are able to prove beyond doubt that the accident was not your fault - this is where it is important to have a reliable independent third party witness - then you can recover your costs and your insurer will re-instate your no claims bonus to its former level.

It Has Taken Me Four Years To Get My Maximum Bonus - Is There Anything I Can Do To Protect It?

Surprisingly, yes there is. If you have reached maximum discount after four or five years you can pay an extra amount to 'protect' your hard earned bonus. Typically the additional cost is between 10% and 20% of the premium. It will allow you to make up to two claims in a specified period (usually three years) without having your No Claims Bonus stepped back. Unfortunately, you cannot protect the No Claims Bonus before you reach maximum bonus.

I've Just Bought A Second Car - What No Claims Bonus Will I Get?

Sorry, you won't get any even if you have maximum bonus on your first car. No claims bonus is built up over the years on the car that you are driving. If you buy a second car you have to start from scratch. However, every cloud has a silver lining and some insurers will offer second car introductory discounts - we can advise you of the various policies offered by insurers.

I've Been Driving A Company Car For Several Years But Now I Have To Insure My Own Car
 - Can I Get A Discount?

Yes you can! Some insurance companies offer an introductory discount - many offer maximum 60% - if you can supply evidence (normally in the form of a letter from your company stating that you have a good driving record). The discount may not be available if you have had claims on your company policy.

I Have Been Driving On My Partner's Insurance Policy For Some Years But Now I Have A Car Of My Own
 - Can I Get A Discount?

The answer is 'yes' again. As with Company Cars, if you can prove a good driving record as a named driver under someone else's policy you may be eligible for a discount.

I'm Selling My Second Car And Will Not Be Replacing It. I Have Maximum Bonus
 - If I Buy Another in the Future Can I Still Use This Discount?

Possibly. It really depends on the gap between buying and selling. Insurers will normally honour no claims bonus if it is no more than two years old (one or two may accept a three year gap). Beyond this time the No Claims Bonus becomes invalid and you have to start all over again.

My Insurance Certificate Says 'Driving Other Cars Included' What Is This?

This is an extension of cover allowed by most insurers BUT it is usually restricted to policy holders over 25 years of age. Young drivers will find that this extension is generally excluded from their motor insurance certificate (this stops a seventeen year old insuring his Mini and then being legally able to drive a Ferrari).

The cover afforded under this policy extension is third party only. It will cover your passengers and damage to other vehicles or property but will not cover damage to the vehicle that you are driving or any loss from fire or theft. The cover is extremely limited and if you intend to drive an expensive vehicle under this cover extension you will be well advised to seek our advice.

Does my 'Driving Other Cars' Extension Allow Me To Drive A Second Car Owned By Me?

No, If your Motor Insurance allows for driving other vehicles you will see that it is only applicable to vehicles 'not belonging to the policyholder and not hired to him under a hire purchase agreement'.

What Is A Policy Excess?

Almost all policies carry what is known as a compulsory excess and is commonly set at around £100 to £200. This is an amount that the insurer will deduct from your claim settlement and is designed to stop policyholders submitting small, unnecessary claims. You can sometimes reduce your premium by taking on a voluntary excess and the amount you save will depend on how much additional excess you are willing to carry. It is worth noting that the voluntary excess is in addition to the compulsory excess. If you have a young driver named on your policy you may find that the excess in the event of them making a claim under your policy is significantly higher (several hundred pounds higher in some cases) - Always read your policy !

I'm Going Abroad. Will I Need a Green Card?

This is something of a grey area. Most driving trips are to Europe and the UK's membership of the EU precludes the necessity to have a green card as your insurance certificate will be adequate for your travels and, provided that you do not intend to take an extended holiday (ie over three months in any period of insurance), many insurers no longer need to be informed and will not make a charge for foreign trips. However, as with most things, it is not quite that simple and some insurance companies still insist on being informed of intended travel dates, some will issue green cards and a small minority continue to charge for European Cover. Read your policy carefully and if you are still unclear about cover whilst driving abroad contact us - do not allow yourself to drive uninsured for the sake of a telephone call. If you are a regular traveller it may be worth advising us when you ask for a quotation as this may affect the decision as to which insurer to place cover with.

I Have Been Offered Legal Expense Cover - Do I Really Need This?

Legal Expense Cover, sometimes referred to as uninsured loss recovery, is not compulsory and is usually purchased as a 'bolt on' cover to your motor insurance. The extent of cover varies from provider to provider but essentially if you have an accident where you are not at fault the legal expense company take on the recovery of your losses that are not covered under your insurance policy such as getting back your excess (see 'What Is A Policy Excess' above) and other reasonable out of pocket expenses like car hire. They will also take on personal injury claims on your behalf including claims for injury to your passengers. The additional cover typically costs between £12 and £20 per year and is money well spent in our opinion.

Why Do Premiums Vary So Much From Insurer To Insurer?

Each insurer views a risk in different ways and the rates they charge depend on the experience they have insuring risks of a similar nature. The premiums charged reflect the skill of the underwriters in determining the frequency and amount of claims and their aim, like all commercial ventures, is to achieve an excess of income over expenditure. If they suffer heavy losses in one year they tweak their rates in order to maintain underwriting profits. Young drivers suffer heavily at the hand of the underwriters because experience shows that accident rates and claim payouts are significantly higher than for mature drivers.

What Should I Do If I Have An Accident?

Obviously if there are injuries you should deal with this as your first priority - in all cases of personal injury you must report the accident to the police within 24 hours. In the unfortunate event of any accident, even if you know that it was your fault, you must never admit liability as this will prejudice your insurer's position and may seriously affect your claim. You should stay calm. Take details from the other party such as name, address, insurance details (if available), type of vehicle, colour, registration number and wherever possible get the name and address of a reliable independent third party witness. Take notes as to the road and lighting conditions, the layout of the accident scene and circumstances leading up to the incident. You may want to consider carrying a disposable camera in your glove box as pictures of the scene can be extremely useful. When the dust settles contact your insurers claim line (information contained in your policy documents) or your broker for advice on what to do next but don't delay reporting the accident - even if you do not intend to make a claim - as this may cause your insurer to refuse to indemnify you.

I've Just Received A Speeding Ticket - Do You Need To Know?

With the exception of parking tickets you should always let your insurer know of any changes to your circumstances at the time they occur. These can include motoring convictions, a change of car, a change in the type of job that you do, a change of address, a modification to your vehicle (even cosmetic changes can alter the rating of you vehicle) If you are unsure contact your broker but do it straightaway - do not wait until your policy renewal.