Insurance jargon buster
Car insurance may not be one of the most glamorous purchases you make during the year but it is one of the most important.
Unfortunately some of the insurance terms used can be a bit confusing, so Matt Gale has put together a handy guide to help you crack the code.
This is what you estimate youï¿½ll complete over the year. The best way to get the most accurate reading is to compare your most recent MOT certificate with the previous year.
If you use your car in connection with your work youï¿½ll need to add this. This covers you to make multiple journeys in your working day other than just your commute to and from one place of work.
Certificate of Insurance
The document that confirms your cover which shows the length of your term, level of cover, those entitled to drive and the details of your car.
Driving Other Cars
There are a number of misconceptions surrounding the definition of this term. ï¿½Driving of other Carsï¿½ allows the policyholder only to drive another privately insured motorcars under third party only cover.
The policyholder must be over the age of 25 and certain occupations and vehicles are excluded. You must check with your cover provider and read your certificate carefully to ensure you qualify.
Simply having comprehensive insurance does not automatically you have this function as part of your insurance policy.
This is the initial financial contribution made by you to your insurance provider in the event of a claim.
Compulsory excesses are sometimes included by the insurer depending on information such as value of vehicle, driver age or licence type, or if your No Claims Bonus is protected.
Voluntary excesses are selected by you and can help reduce the premium you pay to take the policy out, but bear in mind you would need to pay both the compulsory and voluntary excess if a claim is made.
No Claims Bonus
A form of discount given when you take out a new insurance policy. The years you collect relate to the number of years you have previously remained claim free.
Guaranteed No Claims Bonus
This normally carries a compulsory excess and means regardless of a claim, in most circumstances you will retain the no claims bonus you have.
Insurance Premium Tax
A tax which is automatically included as a percentage of any transaction with your insurer.
These are anything which has been added to your car by you or the manufacturer to alter the way your car looks or performs. You insurer must be made aware of these.
If youï¿½ve bought the car and youï¿½re the one driving it, youï¿½re both owner and registered keeper. If youï¿½ve been given a company car, your employer is the owner, but youï¿½re the registered keeper.
The owner bought the car and the keeper uses it regularly.
This relates to the length of time your policy runs for. This is normally 12 months but with Diamond this can also be a 10 month policy, known as a Bonus Accelerator.
Hopefully this list will make shopping for car insurance feel a little bit easier, tweet @DiamondForGirls using the hashtag #DrivingWithDiamond if you want any other confusing jargon cleared up!