Car Insurance FAQ's | learnr™
Below are some frequently asked questions relating to car insurance.
What is an excess?
The excess on your policy is an agreed amount that you will pay when making a claim. The amount is often variable, and if you choose a higher excess, then your overall premium may be lower.
What is compulsory excess?
As a new driver, you will probably have a compulsory excess, which cannot be negotiated with the insurer, and in the event of a claim, you will have to pay.
What is a no claim bonus
If you have a number of years claim-free driving, you may receive a discount based on this length of time.
What is a no claim bonus protection
You can protect your no-claims bonus with various bonus protection schemes offered by insurers, however, if you are involved in an accident your policy will most likely increase based on your history, but you will still have your no-claims discount.
Accelerator policies
As a new driver, you won't have any claim-free driving experience, and therefore you won't have a no claims bonus. Some insurers offer accelerator policies whereby you have a shorter policy (e.g. 10 months) and at the end of that period you have a one year no claims bonus. This will help a new driver gain several years worth of claim free driving quicker.
Business insurance
If you are driving for business purposes, then you will need business insurance. You shouldn't need businses insurance for commuting to work however.