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11 commonly used car insurance terms

Shopping for car insurance can be frustrating but it doesn’t have to be.

To help you make informed decisions about your car insurance coverage, Finder has put together a list of some of the common car insurance terms and definitions.

Main driver

The main driver is the person who drives the vehicle most frequently and earns an NCD.

Named driver

Name driver refers to additional drivers you declare on your policy who frequently drive your vehicle.

Authorised driver

Authorised driver is anyone you give permission to drive in your vehicle but who is not declared in your car insurance. A name driver shares the same excess as you, whereas an authorised driver receives higher access.

No Claim Discount (NCD)

Refers to a discount offered by car insurers for car owners who have not made any claims within a year or more. The longer the car owners do not make any claims, the better or greater the discount they may be eligible for.


Also known as a ‘deductible’, excess is the money you pay out of your own pocket before an insurance company covers the rest of a claim.

Waiver of Excess

Waiver of excess refers to the case whereby some insurers will pay your standard excess when your vehicle is being repaired at their authorised workshop(s).

Young and Inexperienced Excess

Refers to an additional excess which requires drivers below a certain age (determine by the insurer) and/or has less than 2 years of driving experience to pay on top of the standard excess in the event of an accident claim.

Car Insurance Premium

Car Insurance Premium is the amount you pay to an insurer so it will provide coverage and pay claims.

Comprehensive Car Insurance Cover

Comprehensive car insurance cover is the widest coverage in terms of repair or replacement of your vehicle if it gets damaged or lost as a result of accident, vandalism, theft or weather-related damage. It also covers accidental loss or damage to your vehicle, and most of the time all its accessories and spare parts. It also covers liability claims from third parties. A comprehensive coverage is mandatory when you finance your car if you are financing one.

Third Party, Fire and Theft Cover (TPFT)

TPFT covers injury and damage caused by your vehicle to someone else’s vehicle or property. It also covers our vehicle if it’s stolen or damaged by fire.

Third Party Cover

It covers liability from third parties for damage and injury to their vehicle or property caused by your vehicle. Under this coverage, you are not covered for damage to your vehicle when you are at fault.

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