Motor-insurance-explained

Motor Insurance Explained

by Morgan Flanagan Creagh | 5 min read

August 17th, 2021

Car insurance is the safety net that allows motorists to take to the road with peace of mind, however, people are often unsure about the kind of cover that will suit them best. So, in this explainer article, we’re going to cut to the chase and simply explain some of the terms and conditions connected with a car insurance policy.

Getting your insurance quote

Before you pick up the phone or start filling out any online forms, be sure to have the following nearby: your license, the registration plate of your new car and if applicable, your No Claims Bonus (NCB) cert. You may also need the cars NCT and road tax information, depending on the company you are receiving a quotation from.

The NCB is a bonus accrued through safe, claim-free driving. For every year a driver doesn’t claim, they receive a discount on their annual premium. The more years of NCB a driver has the higher the discount they will receive. The maximum amount of NCB a motorist can use with Allianz insurance is 9-years.

A driver may only use their NCB for one vehicle at a time, meaning that if you drive a second car insured in your own name, you will have to begin earning a new NCB for that second policy.

It is good advice to always get more than one quote when shopping for a policy and to be aware of the fine print when you find a policy that’s ‘too good to be true’. Curiously cheap ‘low cost’ insurance policies can often catch drivers out with high amounts of policy excess in the event of an accident.

Policy excess is a fixed monetary amount or percentage that a driver must pay towards the cost of a claim under their policy. Most insurances will require an excess, however, low-cost car insurance providers have been known to require higher than standard excess amounts.

Remember that it’s a good idea to ensure you will be covered on the car you want to buy, so try to get a quote online on that Ferrari, before you pop down to the dealership with your communion money.

Types of cover

Before you start on your online motor insurance journey with Allianz, it’s important to know about the types of cover offered. This will help you better decide on the type of policy for your needs.

Third Party Only

The most basic level of cover offered in Ireland, and often the lowest-priced, is Third Party Only Cover. This means that if there is an accident and you’re at fault, compensation will only be paid to the other party involved.  Injury to a third party is unlimited and up to of €30,000,000 for damage to third party property.

Due to the limited cover offered with Third Party Only policies, Allianz Ireland doesn’t offer it to the customer for the main vehicle on cover. Instead, it is offered as part of the Driving Other Cars policy benefit. This allows a customer to have Third Party cover on other cars, as well as the Third Party Fire and Theft, or Comprehensive policy they hold for their main vehicle.

Third Party Fire and Theft

As the name would suggest, Third Party Fire and Theft is the same as Third Party, only this time the vehicle is covered against theft and fire. Like Third Party insurance, this higher-level policy will still not cover against damages to the holder’s car or any injuries which they sustain if they are at fault for an accident. With this kind of policy, the holder is covered against fire and theft, limited to a maximum of the car’s market value at the time of damage. Third Party, Fire and Theft policyholders also have access to the Allianz Emergency Service in the event of a fire, theft or attempted theft.  They have unlimited personal injury legal liability to third-party cover, and third-party property damage up to €30,000,000.

Comprehensive

The top-level motor insurance available is Comprehensive cover. This offers the driver cover against an accident, damage caused by vandalism, while also offering the same level of cover as Third Party Fire & Theft. The policyholder can also receive compensation for damage to their own vehicle in an accident, even if they are at fault or if the car suffers damage from vandalism. If the comprehensive policyholder is in an accident the assistance service is available to help at the roadside. Comprehensive cover is the most expensive kind of cover offered by most insurance companies.

Standard Benefits

Allianz car insurance policyholders can avail of some standard benefits, like European Cover. This cover allows you to drive in the EU and some select other countries for up to 60 days. Allianz’s Emergency Service is available 24/7 to all policyholders, year-round, in the event of fire, theft or attempted theft*. This service will tow your car, get you home and arrange a replacement car for up to 5 days, or up to 14 days if your vehicle is stolen.

*In the event of an accident the Emergency service is only available if you have Comprehensive cover.

Optional extra benefits

No Claims Bonus protection

NCB protection allows a driver to incur one unlimited claim in a 3-year period without losing their bonus entitlements. However, a second claim will result in a step back of 3-years on their bonus entitlement. Windscreen Breakage, Theft or Fire Damage will be paid out without impact on the No Claims Bonus entitlement.

Driving other cars

Holders of this extra benefit are insured to drive other cars, provided they have the owner’s permission. They are covered, while driving this other car, by Third Party insurance only.

 Windscreen cover 

Windscreen cover covers all glass in the car. This includes the sunroof also, provided you have one. The amount covered under windscreen cover is limited to €200 if you do not use an ‘Aligned Repairer’.

Allianz Breakdown Assistance

Allianz Breakdown Assistance is available within Ireland, Northern Ireland and Great Britain, but not further afield.  This benefit protects you if your car breaks down due to mechanical or electrical issues like a flat battery, a puncture, a lock-out, or if your car is filled with the wrong fuel or lubricant. Limits and exclusions apply.

Personal effects

This extra benefit covers damage or loss of personal effects while they are in the car. This is subject to a maximum value of €200 provided the items are kept in the boot or a locked compartment.

Personal accident

With this benefit, the driver or any passenger is covered for death or serious bodily injury following an accident or fire involving the insured vehicle, up to €13,000.

For further details and a full range of Allianz benefits, click on the FAQ section

Whether you’re a first-time driver or a veteran motorist, Allianz Insurance has the cover to suit you. So, pick up the phone today and call 01 448 4848^ or click here to get straight through to our online quotation system.

Allianz p.l.c. is regulated by the Central Bank of Ireland. Standard acceptance criteria and policy conditions apply. ^Calls may be recorded

About the author

bio image for Morgan Flanagan Creagh
Morgan Flanagan Creagh

Motoring journalist at the Medical Independent. Opinion haver and tech writer for MorganFC.com.