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What does Motor Insurance do?
Motor insurance protects motorists against liability in the event of accidents they may cause. It can also provide cover for the motorist’s own vehicle. Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party’s property, but does not provide any cover for the individual’s own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties.
The Road Traffic Act requires all motorists to be insured against their liability for injuries to others (including passengers) and for damage to other people's property resulting from use of a vehicle on a road or other public place. It is an offence to drive your car or allow others to drive it without insurance.
When you purchase Motor Insurance, your insurer will usually issue two documents:
The Certificate of Insurance - this is evidence of insurance as required by the Road Traffic Act.
The Policy Document - sets out in full the terms and conditions of your policy.
You may also receive a Cover Note. This acts as a temporary policy and also as a temporary certificate of insurance for the purposes of the Road Traffic Act.
You should read your policy carefully to ensure it gives you the level of cover you are seeking. There should be no small print or difficult language in modern insurance policy documents. If you are unsure about what the policy does or does not cover then just ask your insurer/insurance adviser to explain.
Comprehensive Motor Insurance Policies usually cover:
Liability for injuries to other people, including passengers
Liability for damage to other people's property
Liability of passengers for accidents caused by them
Liability arising from the use of a caravan or trailer, while attached to the car
Fire damage and/or theft
Accidental damage to your own car
A personal accident benefit - certain amounts are paid in the event of the death or specific permanent disablement of the policyholder (and sometimes his or her spouse or family member)
Medical expenses necessarily incurred, up to a stated limit
Loss of or damage to personal effects in the car, up to a stated limit.
Third Party Insurance Policies usually cover:
Liability for injuries to other people, including passengers
Liability for damage to other people's property
Liability of passengers for accidents caused by them
Liability arising from the use of a caravan or trailer, while attached to the car;
And Third Party Fire and Theft Policies are generally the same as Third Party policies, but with protection added to cover losses in the event of fire or theft of your vehicle.
Source www.abi.org.uk
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