What is excluded from Comprehensive Insurance Policies?

As names for an insurance policy go, 'comprehensive' and 'all risks' are probably a little bit misleading. Whilst comprehensive insurance covers you from damage which occurs in fortuitous events, your policy is likely to be subject to some exclusions. It is in your interests to arm yourself with knowledge of these exclusions, as they do vary from policy to policy. They are found in the small print of the policy details and thus would benefit from being highlighted.

Find out what the 'loss of use' clause is on your policy. If you can't use your vehicle due to it being damaged, can you count on being given a hire motor car or a courtesy car whilst repairs are carried out on it? What's more, at what point do you not have the right to get a new motor vehicle? Most insurance policies will offer you a new vehicle should your car be less than 12 months old and have lost over 50% of its value due to an accident.

Do bear in mind that this clause only applies to new cars and does not mean that you are covered for all depreciation occurring to car's value when it is involved in an accident. So, if you own a high value vehicle, you're covered for repairs to it, not for its value.

Your insurer will not cover you for wear and tear on your motor vehicle, nor for the cost of servicing or general maintenance. They will actually make sure that the garage repairing your vehicle separates out any charges for repairs they make which are connected to maintenance, or when they replace parts that would normally be replaced during the life of the car. The insurer covers you for fortuitous events, remember.

You're also unlikely to be covered for deception. There is a famous confidence trick of a thief selling you a stolen car, then stealing it back once you have paid them. If this is done before you have obtained 'title' to the vehicle, then you can't claim as you officially have no insurable interest in it. You're also not covered should you be deceived into parting from your motor vehicle for nothing.

The 'excess' that you have to pay on your claim is also counted as an exclusion. This is the amount you pay of each claim and was brought in to make people think before they claim.

Finally, look at your personal effects. Some insurers cover your audio and communication equipment for the full amount, and some will have limits. Your valuables in the motor vehicle are not usually covered, apart from maybe up to a limit of £100-£150. Furthermore, your claim for personal effects will normally have to be part of another claim, not just in isolation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2008

Motor Insurance

Ask About

> Motor Insurance Advice.....
> What are the laws regarding motor insurance in the United Kingdom?
> What are the principles behind motor insurance?
> What types of motor insurance policy are available?
> What is third party only insurance?
> What is third party fire and theft motor insurance?
> What does a comprehensive motor insurance policy cover?
> What is excluded from comprehensive insurance policies?
> How do I claim?
> What to do if you have an accident?
> How do I claim if an accident causes damage to my car?
> How do I claim if the accident involves a third party?
> What do I need to do if using my motor vehicle abroad?
> How do I find the cheapest motor insurance premiums?
> How can I lower my motor insurance premiums?
> How are my insurance premiums affected by convictions, drink driving etc?
> Why do some motor insurance specialise in just young drivers?
> Why do some motor insurers specialise in just lady drivers?
> Why do some insurers specialise in higher performance motors?
> What are the road tax rates by specific type of vehicle?
> Who should I contact should I wish to report a problem with an insurance company?
> Who do I contact if I have a complaint against a finance house?
> Who should I contact should I feel I have been a victim of misleading advertising?
> Are motor insurance laws different in Ireland?
> Are motor insurance laws different in Scotland?
> Are motor insurance laws different in Northern Ireland?
> Are motor insurance laws different in Wales?