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Insurance
News...
"Norwich Union is withdrawing the "Driving Other Cars"
(DOC) provision from its car insurance policies as it believes
it is being abused.
The decision will apply to all new and renewed policies from
Norwich Union Direct from early next year.
The clause, under drivers' own comprehensive policies, gives
them third-party cover on any vehicle they drive, providing
they have the owner's permission. Most policies include it.
But there is concern that removing DOC cover could lead to
an increase in uninsured drivers."
Drivers reactions
http://news.bbc.co.uk/1/low/programmes/moneybox/4343650.stm
This means that you can no longer drive
your wifes car or anybody elses car unless you are stated
on the insurance policy.
This has been a long standing arrangement where third party
cover was available on your comperhensive insurance policy
to drive other vehicles not belonging to you (With the owners
permission) |
Why insure your vehicle?
Because it protects you against liability in the event of an accident
in which you deemed at fault. It can also provide insurance for
your vehicle itself.
Third Party Insurance:
Protects against liability for the injury of a third party or for
the damage of a third parties property i.e. it won't pay for your
car or damages, just those who you damage.
Third Party Fire and Theft:
Like third party but you are also insured against fire or the theft
of your vehicle
Fully comprehensive:
Like Third party fire and theft but this also covers your own vehicle
Usually fully comprehensive
policies offer further cover for example:
• Liability for injuries for other people including passengers
• Liability for damage to other peoples property
• Liability of passengers for accidents caused by them
• Liability arising from a caravan or trailer while attached
to the insured car.
• Fire and/or theft damage
• Personal accident benefits
• Medical expenses (usually up to a certain limit)
• Loss or damage to personal effects (usually up to a certain
limit)
The Road Traffic Act:
1. (a) a person must not use a motor vehicle on a road unless
there is in force in relation to the use of the vehicle by that
person such a policy of insurance or such a security in respect
of third party risks as complies with the requirements of this Part
of this Act, and
(b) a person must not cause or permit any other person to use a
motor vehicle on a road unless there is in force in relation to
the use of the vehicle by that other person such a policy of insurance
or such a security in respect of third party risks as complies with
the requirements of this Part of this Act.
2. If a person acts in contravention of subsection (1) above
he is guilty of an offence.
3. A person charged with using a motor vehicle in contravention
of this section shall not be convicted if he proves-
(a) That the vehicle did not belong to him and was not in his possession
under a contract of hiring or of loan,
(b) That he was using the vehicle in the course of his employment,
and
(c) That he neither knew nor had reason to believe that there was
not in force in relation to the vehicle such a policy of insurance
or security as is mentioned in subsection (1) above.
4. This Part of this Act does not apply to invalid carriages.
An insurance company will issue you with 2 documents:
Certificate of insurance. This legal requirement provides
evidence of insurance
Policy Document: Terms & Conditions of the policy. Make sure
that you read this document carefully. There should be nothing that
you are not aware of as to the cover that you have been given. If
you are unsure about the terms used or any details then you should
contact and ask the advice of your brokers.
When you first get insured with a company they may provide you with
a COVER NOTE to be used like a certificate of insurance on a temporary
basis until your proper full documents can be issued to you.
What else do I need to know?
Policy Limits and excesses: Most policies will have limitations
to the coverage provided. An excess is the amount that you will
have to pay towards the cost of a claim. If there is an excess of
£50 on your policy and you make a claim worth £500 then the insurance
company will pay £450 and you will have to pay the remaining £50.
There may be different excesses for different points of your policy
e.g. windscreen replacement, theft from vehicle etc. Make sure that
you are happy with these figures and that you could afford the excess
and would be able to cover your loss. Also see about your no claims
bonus being lost in event of a claim. This has a longer term effect
increasing the yearly insurance costs until your no claims discount
is back to its current position. The increase in payments and your
excess could add up to more than the amount your are claiming for.
Insured Drivers. You will need to know exactly who can legally
drive your vehicle and what vehicles you are insured to drive. This
can vary from one insurance company to another. A lot of insurance
companies are removing the once automatic ability to drive other
cars under you insurance (with the owners permission) Recent BBC
article:
"Norwich Union is withdrawing the "Driving Other Cars" (DOC)
provision from its car insurance policies as it believes it is being
abused.
The decision will apply to all new and renewed policies from Norwich
Union Direct from early next year.
The clause, under drivers' own comprehensive policies, gives them
third-party cover on any vehicle they drive, providing they have
the owner's permission. Most policies include it.
But there is concern that removing DOC cover could lead to an increase
in uninsured drivers."
No Claims discount: This is a discount given off the cost
of your insurance as reward for not claiming off your policy. Every
year there should be an increase in this discount until it reaches
the maximum no claims discount given by your insurance company.
This can range from 30% for one years no claims up to about 60%
for four or more years. You need to check under your policy details
how an accident could affect this discount and by how much. You
can however also purchase a protection for your no claims discount
where you can claim a certain number of times with no effect to
your no claims discount. This usually costs more money and has various
limitations depending on the terms of your policy.
Legal expenses insurance:
An extra policy to cover any legal costs that you might incur. For
example if you where hit by an uninsured driver and had to go to
court to get compensation
Guaranteed Asset protection insurance.
An extra policy which covers the financial issues such as the full
payment of existing finance for cars bought on finance when the
car is written off. There are various type of guaranteed asset protection
policies depending on the insurance company.
Exclusions
There are certain exclusions which you might find your insurance
policy has.
Theft by deception. If you sell your vehicle, make sure that you
are happy with payment method since any loss will not be covered
by some insurance policies.
Driving other cars. See above BBC article. If your insurance
policy provides cover for you to drive another vehicle with the
owners permission then it only usually be third party fire and theft
cover. Accidental damage to the vehicle you are driving will not
be covered. You should always have the owners permission to drive
their car and make sure that they are fully and comprehensively
insured. This should cover all eventualities.
Also remember this when you let someone drive your car.
Calculation of insurance premiums.
Your insurance company will take on board certain factors in working
out your insurance premium. These things include your address and
if you garage the car (A car parked on the road is more easy to
steal than an car parked off-road, an urban environment has more
car than a rural on and therefore your chance of having an accident
is increased etc) the type of car (including engine size and cars
specifications etc), purpose of vehicle (i.e. business or personal
use only etc) and the type of cover you wish.
For these reason you must give the correct information when providing
your insurance details. If information given is in correct then
you might find that you are not actually insured and unable to claim.
You must inform the insurance company of any modifications made
by you or previous owners to your vehicle. This includes wider wheels,
bigger tyres, changes to engine performance etc. as these can affect
your policy.
Family cars are usually cheaper to fix and are therefore usually
cheaper to insure than larger and/or more powerful cars. Each car
manufactured and sold from new in the UK is given an insurance rating
based on these details. This rating is taken into consideration
when calculating your insurance premium.
Other Factors include:
Speeding convictions. People who speed have a greater chance
of having an accident. Get caught and receive points and you can
expect a bigger insurance premium because you are a bigger risk.
Drink driving convictions. People who drink-drive are far
more likely to have an accident and will be heavily penalised if
caught. This includes insurance premium. Any one caught drink driving
can expect much higher insurance premiums and might possible have
difficulties getting an insurance company to cover them at all.
An insurance policy is only valid if the details are still correct.
If anything has changed such as address, type of car etc then you
must tell your insurance company as you will no longer be covered.
Motoring abroad.
All UK insurance policies should cover you for driving in the EU
(Minimal cover) but you check to see if your policy covers your
vehicle for fire, theft and damage
What to do in the event of an accident
Get as much details as you can. Get the names and addresses of any
witnesses as early as possible before they leave the scene. If you
have a camera then take pictures of the road, cars, surroundings
and any evidence that might be useful such as skid marks etc. Make
a sketch on the accident and how it happened. Do all this as soon
as possible and while it is still fresh in your mind. Get the drivers
details including insurance details (Insurance policy numbers if
possible) and car registrations of any driver involved in the accident
including car makes, models etc. the more details the better. If
anyone is injured in any vehicle then you will be required to provide
your details to them or to the police when asked. You only need
to provide details to someone who has a reasonable reason for wanting
them. You may be put on 'a producer', a requirement to provide your
details to the police either at the scene or your nearest police
station within 24 hours. You may need to produce a valid Log book,
MOT certificate as well as your insurance documentation.
Notify your insurance company as soon as possible. Even of you do
not intend to make a claim for the accident you must still tell
your insurance company. This is required by the conditions of your
policy. Don't forget to tell them of any statements made by you
or any third parties at the scene of the accident.
The insurance company will send you an accident report form where
you should give as much detail as you can about the accident.
If you have a comprehensive policy then the insurance company will
pay for all repairs to your car but they still need to be contacted
as they might have restrictions. Your insurance company may recommend
a particular approved garage to take the vehicle to. There may be
prearranged discounts available to the insurance company which it
might insist on.
If you do not to take your car to a particular garage then you must
obtain a written quote for repair costs first and send it to your
insurers where they can check and agree to the payment.
If you have third party insurance then your insurance will not cover
you for repairs to your car. If the accident was deemed to be not
your fault then you must claim from the other driver if they are
liable for the damage.
If the accident was not your fault
Contact the other driver(s) saying that you intend to claim from
them
Say that you hold them responsible and ask them to tell their insurance
company.
Write to their insurers direct providing details of their insurance
policy (Given to you at the scene).
Send your repairers estimate as soon as possible to their insurance
company.
Still tell your insurance company that you are claiming against
a third party.
On receipt of your letter the third party may choose to settle or
may choose to rebuke your claims. If the third party refuses to
co-operate then seek advice from your insurance company. You may
be obliged to seek legal help which a legal expenses policy should
cover.
If your car is stolen then you must report it immediately to the
police and to your insurers. You might have to wait to see if your
car can be recovered first. Most polices will insure you for loss
of vehicle and contents due to theft, check your policy for coverage.
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