Car insurance – Excesses and Bonuses
The car insurance policy excess
When you make a claim you have to pay the first part of it. This is called the policy excess. Typically you'll pay £100 to £150 for damage, fire and theft, and £60 for windscreen claims.
If you have more than a third-party only car insurance policy, don't sign up till you've checked how much the policy excesses are for each section: damage, fire and theft. Sometimes even third-party only car insurance policies still cover you for windscreen damage, so take this into account when you're buying.
If they ask if you want to add a voluntary excess to reduce your premium, remember that this will be in addition to the compulsory excess, which will probably be at least £100.
The no claims bonus
Car insurance no claims bonuses are straight forward: you get a larger discount the longer you haven't claimed on your car insurance policy, usually up to five years.
If you have five years no claims and then you make a claim, you're bonus is usually stepped back to four years when you renew your insurance. If you have four years or less and you make a claim, your bonus is usually reduced by two years.