Each day we encounter many questions from our customers some of which occur regularly. Below is a list of Frequently Asked Questions - FAQS - about the various types of insurance we offer. The information relates solely to insurance practice in the United Kingdom.

• Car Insurance FAQ
• House Insurance FAQ
• Commercial Insurance FAQ
• Travel Insurance FAQ

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 as a general guide only. You should always read your policy and, if you have any doubt at all, check with your insurer.

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 - your broker 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 vehicle 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 the advice of your insurer.

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 your broker - 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 your broker when you ask for a quotation as this may affect the decision as to which insurer to place cover with.

My Broker Has Offered Me 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 compartment as pictures of the scene can be extremely useful. When the dust settles contact 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.

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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 as a general guide only. You should always read your policy and, if you have any doubt at all, check with your insurer.

What Is The Difference Between Home Buildings And Home Contents Insurance?

Buildings insurance covers the bricks and mortar, ie the general structure of the property and will include most permanent items such as kitchen units and fitted bedrooms. Contents insurance, on the other hand, deals with movable household items such as furniture and personal belongings.

What Is New For Old Cover?

Some policies insure house contents on an indemnity basis which means that, in the event of a claim, the insurer will settle the claim less an allowance for wear and tear. Most modern policies are set up on a new for old basis which, provided your sums insured are not understated, covers your property for its replacement value at today's costs. You should always read your policy to check for any exceptions.

What Is Accidental Damage Cover?

With most house contents policies if you pay an increased premium you can extend your cover to include accidental damage. Typical examples of accidental damage are cigarette burns in carpets, paint spillage or dropped ornaments. You may also be able to extend the cover on your buildings insurance to include accidental damage. This will cover you for such things as putting your foot through the ceiling when you are in the attic. Ask your broker for details.

What Is All Risks Cover?

The new for old and accidental damage cover normally relate to incidents occurring within the house but, again for an increased premium, you can buy additional cover for property outside the house. The cover is normally on a worldwide basis and will include such things as loss or theft of baggage whilst on holiday, loss or theft of jewellery away from the home or something as simple as losing your spectacles.

My House Is Worth £70,000 But My Lender Says I Only Have To Insure It For £50,000. Why?

Buildings insurance is put into effect to cover the rebuilding cost of your house and its outbuildings such as a garage. You do not need to insure the value of the land on which the house is built or, indeed, any the extra value attributed to a property because of the area in which it is situated - you only need to cover the cost of demolition and rebuilding. There can be exceptions - if you own a building that would need specialist reconstruction (as in the case of many listed buildings) you may actually have to insure for more that the market value of the house. If you are not sure about how much you should insure for then contact your broker who can assist.

I Have A Valuable Oil Painting. Is This Covered Under My Contents Policy?

Your policy will normally cover individual items up to a value of between £1,000 and £2,000 depending on your insurer or they may give cover for a specific percentage of the overall sum insured. For individual items that exceed the allowed values you must specify them separately and pay an additional premium. Your insurer will probably want to see a recent professional valuation. It is surprising how many people fall into the trap of thinking that their valuable antique furniture is covered under their general contents policy - they have a nasty shock when they submit their claim form. Also keep abreast of changing values - your policy will usually be indexed linked to the retail prices index but collectible items quite often gain value at a much quicker rate and your sums insured should be regularly reviewed.

What Can I Do To Reduce My Premium?

There are many ways to obtain discounts on your home policy. You can consider inexpensive ways such as joining your local neighbourhood watch scheme and fix smoke detectors. You can spend money on installing window locks and improved door locks (check with your broker to ensure that the locks conform to your insurers minimum standards) or consider a burglar alarm (again check with your broker that the installation is approved by your insurers). Getting older also has some advantages as most insurers have reduced rates for over 50's. If you remain claim free your insurers may also reward you with a no claims discount in much the same way as they do for motor insurance but, sadly, the level of discount is not so high with the typical maximum being 20% - still worth having though.

Do I Have To Insure My Buildings With My Mortgage Provider?

No, unless you are tied into a special package which insists that you insure with your lender. You may be surprised at how much you can save by changing your home insurance. We have access to many markets - if you would like us to give you a quote why not spend a couple of minutes filling out a quote form. It won't cost you anything but may save you pounds! Click here to complete a quote form.

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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 as a general guide only. You should always read your policy and, if you have any doubt at all, check with your insurer.

What Does Public Liability Insurance Cover?

During the course of your business activities you may encounter many different hazards some of these may result in you causing damage or loss to a third party. Public liability insurance seeks to indemnify you against most of these occurrences and covers your legal liability in respect of bodily injury, death, disease to another person (not an employee) or for accidental damage to third party property. Some policies extend to give products liability which gives cover for legal liability for loss or damage caused by goods manufactured, sold, supplied, repaired, altered, installed, erected, processed, tested, cleaned or treated.

What Is Employers Liabilty Insurance?

Firstly, you need to establish "who is an employee?"

An employee is any person working with you in connection with your business who is a person:

1. under a contract of service or apprenticeship with you.
2. who is a labour master or labour only sub-contractor or any person supplied by them.
3. who is another self employed person working for you.
4. borrowed by or hired to you.
5. Participating in a work experience or similar scheme.

Employers liability insurance is compulsory under law in the UK and provides indemnity in respect of your legal liability as an employer for compensation for accidental injury arising in connection with your business to any employee caused during the course of their employment with you.

I Am A Self Employed Sole Trader So I Don't Need Employer's Liability Insurance

Probably not. Where a sole trader (not a limited company) employs members of the immediate family then employers liability cover is not normally required but is still desirable. Sometimes a sole trader will take on a work experience person for a couple of weeks - most insurers will extend cover for this. Even as a sole trader there is sometimes a mistaken belief that employers liability is not applicable in cases where it should be in place. The most common error is where sub contractors are involved. They will normally carry their own public liability insurance but if you have engaged them on site to be your sub contractors and they follow any instructions given by you then there is an employer/employee relationship and cover is required. Liability claims tend to be high and the subject quite complex so it is wise to check with your broker if you are at all unsure.

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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 as a general guide only. You should always read your policy and, if you have any doubt at all, check with your insurer.

Do I Have To Buy My Travel Insurance Through A Travel Agent?

No, unless it forms part of a special deal. You may be surprised at how much you can save by shopping around.

What Discounts Are Available When Buying Travel Insurance?

Unlike motor and household insurances a no claims bonus is not available for travel insurance but if you are a frequent traveller an annual policy will undoubtedly be a good buy. Also, if you have all risks insurance under your household policy and you do not exceed the sums insured (see House insurance FAQS above) your baggage will be covered and you may get a discount of around 15% for deleting it from your travel insurance. There are also special policies for families and large groups of travellers. Ask your broker for details.

I Had A Go At Bungee Jumping On My Holiday - Was I Covered under My Travel Insurance?

Unlikely. Many of us do things on holiday that involve a small element of risk such as jet skiing, bungee jumping etc. It might seem like a good idea at the time but the odds are that hazardous pastimes are excluded from your cover. Once again, always read your policy and, if in doubt, ask ! However, if you are the adventurous type all is not lost as some insurers offer specialist policies for hazardous sports. Most policies will cover you for winter sports such as snowboarding and skiing but the premiums charged are usually double.

My Son Is Taking A Year Out From University And Will Be Backpacking Around The World - Can I Get Some Cover?

Yes. A few insurers offer specialist policies for backpacking often for long periods, some will even extend cover to include working abroad.

I Don't Need Travel Insurance, I've Got An E-111

Yes, but don't rely solely upon that. The E-111 provides reciprocal treatment within participating EU countries but, unlike a travel insurance policy, it will not cover any costs of repatriating you to the UK, provide you with any hospitalisation benefits or refund you your out of pocket expenses.

Just What Does Travel Insurance Cover?

Our online travel insurance is underwritten by Fortis and a sample of their policy can be seen by clicking here. Remember, not all policies are the same.

I'll Arrange My Insurance Just Before I Leave For My Holiday

The earlier you arrange cover the better. Most policies cover cancellation or curtailment of holidays and this can sometimes happen many weeks before departure. Cover for this starts as soon as the policy is issued and will not cost you any more.

Have A Medical Condition, Can I Still Have Travel Insurance?

It depends on the nature of your illness but in most cases, provided you are not travelling against the advice of a doctor, cover can be arranged.

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