When you are looking for Car Insurance you will inevitably encounter a number of terms and acronym’s used by Insurance companies. The following is a list of the most frequently used terms and acronym’s what they mean:
- NCB – No Claims Bonus. Typically you get 1 years bonus for every year that you are insured and do not claim against your insurance. This bonus is then applied to your annual premium as a discount for not making any claims!
- Excess – A defined amount of money that you will pay your insurance company in the event that you need to make a claim. For example, if you need to make a claim you might need to pay the first €150 (the agreed excess amount) and the Insurance company will then pay all of the rest of the costs.
- TP – Third Party. Third party only insurance only covers you for damage or injury to a third party. You have no cover whatsoever for fire, theft or damage to your vehicle. Third party only insurance protects you against any claims made against you should you have an accident. This is the minimum level of cover required by law
- TPFT – Third Party Fire & Theft. This type of policy is the same as Third Party but will also cover your car in the event of a fire or if it’s stolen. This type of policy is more expensive than Third Party but cheaper than Fully Comprehensive.
- Fully Comprehensive - The highest level of car insurance cover you can get. With fully comprehensive insurance you will be insured even if the accident is your fault (even if no other person was involved). This is the most expensive type of car insurance policy.