Key Terms You Must Know
- Premium — The amount you pay (monthly, quarterly or annually) to keep your policy active.
- Excess / Deductible — The first portion of any claim you pay yourself. If your excess is $500 and the repair costs $2,000, you pay $500 and the insurer pays $1,500.
- No-Claims Discount (NCD) — A reward for not making claims. Each claim-free year earns you a bigger discount on your premium — up to 50–60% in some territories.
- Named Driver — A person other than the policyholder who is also covered to drive the vehicle. Adding a young or inexperienced driver typically increases the premium.
- Agreed Value vs Market Value — Agreed value is a fixed payout if the car is written off, agreed in advance. Market value means the insurer pays what the car was worth at the time of the loss — which may be less than you expect as cars depreciate.
- Exclusion — Situations your policy will not cover, such as driving under the influence or using a personal car for commercial purposes without declaring it.
Frequently Asked Questions
What happens if I drive without insurance in the Caribbean?
Driving without at least third-party insurance is a criminal offence across all major Caribbean territories. Penalties include fines, licence suspension, vehicle impounding, and even imprisonment in some jurisdictions.
Can I transfer my no-claims discount between insurers?
Yes, in most Caribbean territories you can transfer your NCD. You will need a letter from your previous insurer confirming your claims history. Some insurers may cap the transferred discount.