Chapter 1: Motor Insurance Flashcards
What are the four levels of motor insurance cover?
- Road Traffic Act
- Third party only
- Third party, fire and theft
- Comprehensive
What are the features of Road Traffic Act cover?
- Unlimited liability for bodily injury
- £1.2 million for loss or damage to property
- Indemnity for claimant’s costs
- Hospital charges (if applicable)
What does the Third EU Motor Insurance Directive require RTA cover to include?
- Cover for the vehicle required by the country in the EU which it’s in.
- Liability cover for the passengers as employees of the driver while in the course of employment.
What does Third Party Only cover?
- Cover for vehicles while not on a road
- £20 million for third party property damage
- Potentially cover for accidents when the vehicle does not belong to the driver
- Potentially cover for anyone using the vehicle with permission of the policyholder
- Legal costs
What does Third Party, Fire and Theft cover add?
- Cover for damage caused by fire, lightening or explosion.
- Damage while stolen or being stolen
- Stolen and not recovered
What does comprehensive cover add?
- Cover for other accidental or malicious damage to the vehicle.
- Personal accident cover for the insured or their spouse
- Medical expenses
- Personal belongings and clothing
Give some extensions of a motor policy.
- Glass breakage
- Personal belongings and clothing
- Young additional drivers
- Loss of use
- Personal accident benefits
- Foreign use
- Election use
- Racing
- Caravans and trailers
- Misfuelling
Give some exclusions of a motor policy.
- Unlicensed drivers
- War risks
- Sonic bangs
- Use outside of that permitted by the insurer
What does a standard motorcycle policy include?
- Accidental damage (same as private vehicles)
- Legal liability (Same as private vehicles)
- No personal accident benefits
Give some extensions to a motorcycle policy.
- Trailers
- Riding other motorcycles
- More than one cycle insured with the same insurer
- Invalid carriages (e.g. mobility scooters)
What is commercial motor insurance?
Cover for goods and passenger vehicles and other special-purpose vehicles e.g. farm vehicles.
What does commercial vehicle insurance cover as standard?
Generally the same as that available for motorcycles and ordinary cars.
What are the differences in commercial vehicle cover in respect of trailers?
- Articulated trailers are offered third party cover while attached (comprehensive is available)
- Disabled motor vehicles are not covered if the trailer is only covered by third party insurance (comprehensive will cover the vehicle)
What is omitted from a commercial vehicle policy that is included in a private one?
- Driving other vehicles (due to the extensive variety of commercial vehicles)
- Personal benefits (e.g. medical expenses, cover for belongings).
Give some extensions of a commercial motor policy.
- Third party property damage
- Medical expenses
- Windscreen cover
- Indemnity to hirers
- Carnivals
- Loss of use
How does the ‘use of insured vehicle’ exclusion differ to that of a private motor policy?
An insurer is not liable of the vehicle is used in a way not stated in the schedule or if it is used for racing or pace-making.
A private one is less specific.
Are motorcycle accessories covered under a motorcycle policy if stolen?
Only if stolen with the motorcycle.
Where must all vehicles be registered in a multi-car policy?
Registered to the same address.
How much will a NCD be reduced by if a claim is made?
2 years.
Can a NCD be protected?
Yes.
If more than 5 years, they may be able to protect it for life for an extra payment.
What does an uninsured driver promise do?
Protects the NCD and covers the excess if involved in an accident with an uninsured driver.
Only if the details of the third party can be determined. So does not apply for ‘hit and run’ accidents.
Is loss of use covered under a third party fire and theft policy?
No. This is only covered by Comprehensive cover.
