Car insurance - Features explained

No claims discount
The no-claims discount (NCD) is one of the most important features of your car insurance policy. The amount of NCD you can expect varies widely from insurer to insurer. One year’s claim-free motoring could give you a discount of as 57.5 per cent, or as little as 20 per cent, depending on which company you are with. Typically, you can reach a maximum NCD of 65 to 70 per cent, if you have four years of claim-free motoring. Some insurers offer a higher maximum NCD for older drivers.

In the best cases, the maximum NCD would be reduced by just 3 per cent 

Your NCD will be cut if you make a claim, but the size of the cut varies between insurers, too. In the best cases, the maximum NCD would be reduced by just 3 per cent, from 75 to 72. But if you are under 50, you could see your maximum NCD cut by as much as 22 per cent. Check with your insurer what happens if you have to make further claims within a three or five-year period – as it may mean a further cut in your NCD.

Protected no-claims discount
You can limit the impact of a claim on your NCD by paying extra for NCD protection. You’ll have to pay extra for this – typically 10 to 15 per cent – and it is usually available only after four years with the same insurer. This protection can make a huge difference to the premiums you pay. If you protect your NCD, making one claim in a year will have no effect. Making two claims in a year won’t affect your NCD with some companies. But with others, your NCD could be reduced to as little as 45 per cent if you make two claims in a year.

Courtesy car
A replacement car is a useful benefit if your car is off the road after an accident. Most insurers will provide a courtesy car - but only if your car is repaired by an approved repairer. If you don’t choose one of the insurer’s approved repairers, you won’t get a courtesy car. 

Personal belongings
If the worst happens, will you be compensated for personal belongings which have been lost or damaged? Our Best Buys include personal belongings cover. Typically, though, policies with this type of cover still exclude items such as tickets, money, stamps and vouchers. The type of cover that insurers offer varies. Only a minority of insurers will replace your items with new ones. The rest will take the age and condition of the item into account when deciding how much to pay out. 

Choice of repairer
With some insurers, you must use one of their approved insurers. If you don’t, they won’t pay for the repairs.

Windscreen cover
Insurers have different requirements for repairing or replacing damaged windscreens. They charge different excesses, and it’s likely that you will have to use one of their approved windscreen repairers or replacers. 

Medical expenses
Some policies include cover for dental work you need as a result of an accident

Some policies include cover for medical expenses: for example, dental work or physiotherapy you need as a result of an accident.

In-car audio equipment
Insurers differ in how they cover in-car audio equipment. Most companies will limit the amount of cover for audio equipment that was not fitted by the car manufacturer - typically £500 or more, but it could be as little as £100. 

Legal protection
Motor legal protection covers the cost of legal action resulting from a car insurance claim. 

Age limits
Most policies have age limits: they will only insure people over a minimum age and under a maximum one. Sometimes, though the upper limit is lower for people taking out a new policy than for someone who already has a policy with the company.