Motor insurance policy terms can be confusing for most people and you may end up paying for features you do not need or worse, be stuck in a situation where you are put at great financial liability. So, make sure that you know exactly what you are paying for and what you are getting in return.
How are rates calculated?
Policy premium rates will most likely depend on the model of your car, your current driving record, you history with insurance as well as the features of the policy that you sign up for. Always research every aspect of the plan that you intend to sign up for and enlist some help if you have trouble with some features.
Who is covered?
While most policies will assume that you are the sole driver of the car when you sign up, you should take the time to check it and include all other drivers that may be likely to use it. This will save you a lot of money if you lend your car to your wife and she ends up in an expensive accident. Premiums will rise when more drivers are added, but if your car is used by others regularly, this will be worth the increase. Some policies may also allow addition of a few drivers without cost, so look into that.
What is the excess?
The excess is the amount of money that you are personally responsible for if you get into an accident. The insurance company handles the rest.
What are some extra protections?
Here are a few less known protections you can pay for if you think you need them. Car Rental Extension allows you a courtesy car when your car is being repaired. Additional Personal Accident cover will let you increase the amount covered under the insurance for personal injuries. No Claim Discount protector will mean that if you get in an accident your NCD will not be affected (the number of accidents this applies to each year will be set in the agreement.)
This will help you understand some of the policy terms and hopefully make a better choice.