Your guide to buying Car Insurance

Buying car insurance can often seem complicated and a little bit scary, there’s a lot to take in, but what does it all mean? We have collated some of the frequently asked questions we get here at Budget Insurance and have written a guide to help you through your journey.

Let’s get jargon busting!

When buying car insurance you often hear lots of words and are probably thinking, what does that even mean?! NCD, excesses or third party, fire and theft, are some of the common ones, but what do they actually mean? Well, let us explain.

What does NCD actually mean?

NCD stands for ‘No Claims Discount’ sometimes known as No Claims Bonus and quite simply is the number of years you haven’t made a claim on your insurance policy. For most insurance providers the higher NCD you have, the more likely you are to receive a reduction on the price of your premium. If you have a Budget Car Insurance policy, you can upload your NCD proof, which is a letter from your previous insurance provider, via our self service centre.

What different types of car insurance cover are there?

Comprehensive cover

This cover offers you the widest insurance cover, but what does this actually mean in English? Well, you are covered if your car is stolen, damaged by fire or accidentally damaged. A Budget Car Insurance policy also covers you and your partner if you are permanently injured in an accident involving the car.

Third Party Only

This is the minimum cover you are required to have by law to drive your car on UK roads. Whilst this is often seen as being the cheapest option, it offers the very minimum cover. Essentially this cover means that if you are in an accident with another car, your insurance company will only pay for the other car to be fixed.

Third Party Fire and Theft

The only difference with this cover is that in addition to providing the minimum third party cover, you are also covered for fire and theft of the insured car.

How many additional named drivers can I have on my policy?

Whilst every insurance provider is different the maximum number of drivers allowed on a policy is usually the policyholder plus four named drivers. Only drivers named on your certificate of insurance are insured to drive your car. Similarly, you can only drive someone else’s car if you are a named driver on their certificate of insurance.

You will usually incur an extra charge for adding named drivers, however sometimes adding an experienced driver as a named driver to your policy if they are regularly drive your car can sometimes reduce the cost of your insurance.

It is possible that if you have a comprehensive policy you may have third party only cover when driving a car that you do not own. However not all policies will provide this cover so it is best to check with your insurance provider.

Am I covered for driving abroad?

Probably one of the most asked questions is around driving your car abroad. Can you? Can’t you? Is it legal? Well, if you drive within EU countries your UK insurance policy will automatically provide you with the minimum cover legally required in the country you are driving in. You must as a minimum carry your driving licence, certificate of insurance and passport with you while you are driving. However check your certificate of insurance as you may have full Europe wide insurance cover anyway. If you don’t and you want equivalent cover while you are abroad to the cover you have in the UK, call your insurance provider and let them know your holiday dates to extend the policy cover, this will most probably incur a charge.

If you are going outside the EU you will need a Green Card and this really is a must as without it you will not be covered if anything happens.

What do I do if I change my car within the year?

Feeling a bit flash or just come across a bargain and changed your car within the year? It does happen! Yes, unfortunately if you change your car within the year’s insurance, then you will need to call your insurance provider immediately to advise them of the change. There will almost certainly be a change of premium but it’s fairly straight forward and can be sorted within minutes over the phone. It’s worth noting that you can call your insurance provider for a quote to find out how much this will cost before you purchase the car.

It’s really important to let your insurance provider know of any changes in your personal circumstance, from living situation, address, to change of job. All of these things can have an effect on your policy and must be up to date in order for you to claim if something happens.

Phew! That’s a lot to take in, but hopefully we have cleared up some of the questions you may have had. If there is anything else you would like to know, please visit our Facebook page.


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