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How to understand your car insurance policy

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Your insurance policy explained

Insurance documents are almost universally quite confusing.

There’s a lot of legal jargon, and it can be hard to work out exactly what’s going on.

We’ve designed this quick-read guide to tell you everything you need to know about your car insurance policy.

If you’re in an accident, follow our guide on making an insurance claim!

What does car insurance cover?

What types of car insurance are there?

  • Third-party:

    Covers damage that’s caused by you, or your passengers, to other motorists. It doesn’t cover your car!

  • Third-party, fire, and theft:

    Very similar to the above, but it also covers damage by fire, and your insurance company will pay for a replacement car if it’s stolen.

  • Comprehensive:

    Includes all of the above and also covers damage to your vehicle.

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What is ‘an excess’?

What is a no-claims bonus?