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Motor Insurance…Protects You Against Liability for Motor Accidents You May Cause.

Many different types of motor insurance cover are available: -‘Comprehensive’ cover, which protects motorists against liability for accidents they may cause and includes accidental damage, theft and damage by fire, as well as liability towards third parties.

‘Third Party’ only cover, which protects drivers against liability if they injure a third party, or cause damage to a third party’s property, however it does not cover the motorist’s own vehicle or property.  

The Road Traffic Act in the UK requires all motorists to be insured

  • Against their liability for injuries to others including any passengers.
  • For damage to other people’s property, caused by the use of a vehicle on a road or other public place.
  • It is an offence to drive a car, or allow others to drive it without insurance.
  • Your insurer will issue you with a Certificate of Insurance as required by the Road Traffic Act, which you can be asked to produce as evidence that you have insurance cover.

Comprehensive Motor Insurance UK Policies normally cover: –

Liability for death or injuries caused to other people, including passengers.
Accidental damage to your own car.
Theft or fire damage.
Damage to personal possessions in the car, up to a specified amount.
Responsibility for any damage caused to other people’s property.
Accountability of passengers for accidents when caused by them.
Liability resulting from the use of a caravan or trailer with the car.
Medical expenses incurred, up to a set limit.
A personal accident benefit is payable in the event of the death of, or a specified permanent disablement of the policyholder.
Some insurers provide a free courtesy car.
Emergency overnight accomodation.

Third Party Motor Insurance UK Policies usually cover: –

Liability for death or injuries caused to other people, including passengers.
Responsibility for damage to other people’s property.
Accountability of passengers for accidents caused by them.
Liability arising from the use of a caravan or trailer with the car.
Third Party Fire and Theft Policies are usually the same as Third Party, with the addition of cover for claims caused by fire or theft of the vehicle.

Motor Insurance Policy Excesses: An ‘excess’ is the first part of a claim which is payable by the policyholder and the insurer will only reimburse you with the amount that is greater than the excess.

There may be a number of different excesses in one policy e.g. different excesses will apply, based on whether a claim is for theft, or accidental damage and there is generally an excess for windscreen replacement claims.

There are also maximum limits that the insurer will pay out on any claim.

Drivers: – The policy may only cover driving by the policyholder or named people, or allow driving by any qualified person with your permission.

Vehicle Use: – Your policy will specify the uses for which your vehicle is insured, e.g. use of your car in connection with work or business.

Motor Insurance Companies require that you inform them about personal medical conditions, which may have an effect on your ability to drive safely.

You must also tell your insurer of any changes in the personal information you have given them, e.g. change of address or occupation, type of vehicle and any motoring convictions or penalties incurred.

Motor Insurance policies require that you maintain your vehicle in a roadworthy condition, otherwise your claim could possibly be declined.

So do read your policy carefully, so that you are aware of the cover, limits and excesses detailed there. If you are unsure about what your policy covers, ask your insurer to clarify the position for you.

No Claims Premium Discount: – Most UK motor insurers allow premium discounts for policyholders with a claim-free record. Some also offer protection for this valuable discount, so that for an additonal premium, you are allowed a number of claims without affecting the discount.Scales of discount vary, but can range from 30% for one claim free year up to 65% after four or five years.

Shop around and consult the various insurance companies and brokers for further advice and quotes by telephone, or on the Internet, to find the right policy at the best price, for your motor insurance cover.

The articles on this site are for information purposes only. None of the content of Home Security Action should be construed as advice under the Financial Services Act 1986.

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