Requirements of any motor insurance policy Flashcards
What is the main reason why motor insurance is a legal requirement?
To protect any innocent third party
What is the minimum level of cover on any car insurance policy?
Third Party cover
What are the requirements that form the basis/structure of any ‘Third Party’ policy?
Third party death & injury, third party property damage, passenger liability, third party cover for towing, third party cover in foreign travel, emergency treatment fees
How much will the third party policy pay for a claim where an innocent person has been injured or killed due to the customer’s actions?
An unlimited amount of money.
How much will the third party policy pay for a claim where a passenger travelling in the customer’s vehicle has been injured or killed due to the customer’s actions?
An unlimited amount of money if they are not related.
How much will the third party policy pay for a claim where an innocent persons property has been caused damage?
Up to £20 million
How much will the third party policy pay for any legal fees connecting to with a claim?
Up to £5 million
How much will the third party policy pay for the customer’s own property damage?
Nothing
By law, the third party policy must have at least ___ of third party property damage cover.
£1 million
Who is covered for injury or property damage caused to a third party by a passenger traveling in the customer’s car?
The third party and the customer (passenger liability)
How much ££ is covered for injury or property damage caused to a third party by a passenger traveling in the customer’s car?
Unlimited for death or injury and £20 million on property damage (passenger liability).
What does the third party cover for towing entail?
Customers are covered for damage or injury to third parties and their property that is caused by any type of trailer towed by their vehicle but not covered for damage to the trailer itself. A trailer could be a caravan. The cover only applies whilst the trailer or caravan is attached to the vehicle.
If you drive in another EU country what will your policy cover?
The minimum level of insurance required in that country or the min required in your own country, whichever is greater.
What do the emergency treatment fees cover?
By law your policy must cover the cost of emergency treatment including any ambulance fees following a road traffic accident.
What are the types of motor insurance policies you can purchase?
Third party only (TPO), Third party, fire and theft (TPFT) or Comprehensive (COMP).
What does TPO stand for?
third party only
What does TPFT stand for?
Third party, fire and theft
What does COMP stand for?
Comprehensive
What is included in TPO policy?
In Third Party Only police included: TP death & injury, TP property damage, passenger liability, TP towing cover, TP cover in EU
What is included in TPFT policy?
In Third Party Fire + Theft policy included: TP death & injury, TP property damage, passenger liability, TP towing cover, TP cover in EU +++ fire damage to your own car and theft or attempt theft to your own car
What is included in COMP policy?
In comprehensive policy included: TP death & injury, TP property damage, passenger liability, TP towing cover, TP cover in EU +++ fire damage to your own car and theft or attempt theft to your own car +++ addicental damage to your own car, malicious damage to your own car, windscreen damage to your own car
What does TPO policy cover in your own car?
Nothing, only damage you cause to other people and their property so you are legal to drive.
What does TPFT policy cover in your own car?
Fire and theft damage.
What does COMP policy cover in your own car?
Any damage to your own car with exclusions but all every day situations are covered.
What are the levels of cover?
TP (Third party), F (Fire damage), T (Theft and attempted theft), AD (accidental damage), MD (malicious damage) and GD (glass damage)
How much can a customer claiming for a fire damage claim for?
The market value of the car at the time of the loss
Is the customer covered if their car is stolen and never found with TPFT policy?
Yes
When is theft not covered by the TPFT policy?
When the car is unlocked or the keys are left in or on the vehicle.
What does the TPFT policy cover in case of theft or fire?
The required repair if possible, the value of the car at the time of the loss if it is not repairable limited to the market value at the time of the loss
What does AD stand for and what does it cover?
Accidental damage. If the vehicle is under one year old at the time of the loss, the customer was the first and only registered owner, and the vehicle was written off; we will replace the vehicle on a like-for-like basis.
What does MD cover?
Malicious damage covers things done to the car with malicious intent (not trying to steal the car and it is not an accident).Cover is limited to the market value of the car.
GD means?
The customer is covered for any breaks or chips to the windscreen or window glass.Also if broken glass damages paintwork.
How much does the customer need to pay for excess if the glass is repairable?
Nothing BUT if the glass needs to be replaced an excess will apply.
