Motor Insurance Policy Conditions - Understanding your motor insurance policy

Understanding your policy.

If you’ve never bought insurance before, or want to learn more, read on. We will be delighted to expand on any topic listed. It's against the law to drive a motor vehicle, or allow others to drive it, without insurance.

Car Insurance Documents

	A cover note – is a temporary certificate of insurance so that you can comply with the Road Traffic Act.
	A certificate of insurance– gives proof that you are covered as required by the Road Traffic Act.
	A policy – tells you exactly what you are covered for and gives terms and conditions.

You may find the following definitions helpful. However, please bear in mind that specific details such as excesses and cover limits vary - so check your details, either by referring to your policy, or by talking to your insurance adviser.

Third Party Only covers:

	Your liability for any injuries you cause to other people, including passengers
	Liability for damage to other people's property
	The liability of passengers for accidents caused by them
	Liability arising from the use of a caravan or trailer, whilst attached to your car. (Damage to the caravan or trailer itself is not covered). Separate insurance is available.

Third Party, Fire and Theft covers:

As Third Party Only, plus:

	Damage caused to your car by fire
	Theft of your car (excluding loss by deception)
	Damage caused to your car by theft, or attempted theft

Comprehensive covers:

As Third Party, Fire and Theft, plus:

	Accidental damage to your car, subject to any excess (see later)
	Additional benefits, such as glass cover, Personal Accident, Personal Effects in the car, etc.

Calculating the cost

When working out the premium required, insurers take into account lots of different factors.

You must give full and truthful information.

Drivers

Your certificate will state who may drive your vehicle. But it's important to tell your insurer who you want to drive, as their age, driving record and occupation can affect your premium and cover.

If you've an "any driver" policy, it's always best to check eligibility for anyone who wasn't specified at the time you took out your policy.

District

Generally speaking, it costs more to insure a vehicle in an urban area than it does in a country area, based on insurers' experience of claim frequencies and levels. So it's important to tell your insurer where your car is kept overnight, and whether it's in a garage.

Use

Your policy and certificate will clearly state what you (or other drivers) are allowed to use your car for. Social, domestic and pleasure use will always be included – but business may not. And business use could be required by some insurers if you are only commuting to and from one place. So if the use of your car changes – check with your insurer first.

Excess

The first amount of any claim that is your responsibility. An excess may apply if your car is damaged, lost or stolen. Excesses vary in amount, usually from £50 upwards. They can be extended to much higher levels, eg, if a young driver is in charge of your car.

Excesses can be imposed by the insurer, in which case they are known as ‘compulsory excesses’, and in addition you can volunteer to stand an excess in return for a reduction in premium - known as a ‘voluntary excess’. Always make sure you fully understand the excesses that apply to your policy.

Driving other cars

Many policies cover the policy holder to drive a car which belongs to someone else. But cover will be Third Party Only, even if you have a Comprehensive policy. So you can't claim for accidental damage to the borrowed car.

Your insurance certificate will indicate whether your policy includes 'Driving other cars' . If in doubt, don't!

Drinking and driving

Convicted drivers will face difficulty in obtaining cover with some insurance companies, and will certainly face huge premium increases. Please don't drink and drive.

Giving lifts

If your vehicle seats eight passengers or less, it's okay to accept contributions from passengers towards your running costs. However, this does not apply if you make a profit from payments or if you carry passengers as a business.

If you change your car

Tell your insurers before you change your car, even if your certificate doesn't specify a vehicle registration number.

Make sure it's roadworthy

The onus is on you to make sure your car is roadworthy. If you don't, you could find a claim is rejected

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