Motor insurance can be confusing, especially for courier and taxi insurance. This guide explains some common insurance terms in plain English, so you can choose the right policy with confidence.

Comprehensive Cover:

Comprehensive cover is the highest level of cover. It pays for damage to your own vehicle, even if the accident was your fault. It also covers your vehicle if it is stolen, set on fire or damaged on purpose by someone else. It gives you extra peace of mind on the road.

Third-Party Cover:

"Third party" means someone other than you or your insurer, such as another driver, a passenger or a pedestrian. This cover pays if you hurt someone or damage their property. The law says you must have at least this level of cover in the UK. It protects you from big costs if you have an accident.

No-Claims Bonus (NCB):

A no-claims bonus is a reward from your insurer for each year you don't make a claim. The longer you go without making a claim, the bigger your discount on the price of your insurance. It is a good reason to drive safely.

Excess:

The excess is the amount you pay towards a claim yourself. There are two types. The compulsory excess is set by your insurer. The voluntary excess is an extra amount you choose to add, which can lower the price of your insurance. If you choose a voluntary excess, make sure you could afford to pay the total amount if you need to claim.

Public Liability Insurance:

This cover is important for courier and taxi drivers. It pays if a member of the public is hurt, or their property is damaged, because of your work. It gives you extra protection when you deal with the public.

Hire and Reward:

This is cover for vehicles that are used to carry goods or passengers for payment, such as courier or taxi work. Standard car insurance does not usually cover this. Hire and reward cover means you are protected while you work, which helps protect your income.