Motor Insurance

It is an offence to drive any motor vehicle on a public highway unless the driver is insured against liability for injuries to other people, including his own passengers, resulting from a traffic accident.

The usual minimum motor insurance, often referred to as `third-party cover', extends the cover to include not only damage or injury to other persons but also to their property, for example to their vehicles. Thus, should you be involved in an accident that is at least partly your fault, your liability for the damage you cause to the other vehicle will be covered, although the damage to your own vehicle is not covered.

Motor comprehensive

A common addition to the simple third-party insurance is cover against fire and theft of your own vehicle, but not against any other hazards. A full comprehensive policy will give cover against all accidental loss or damage to your car, excluding normal wear and tear and mechanical or electrical breakdown.

Comprehensive cover also usually includes personal accident cover up to a stated limit for yourself and spouse arising from car travel, in any vehicle, including the cost of medical treatment not given by. the Health Service. Loss or damage to personal effects carried in the car is also usually included.


Personal Liability

An interesting addition to most contents insurances is that of personal liability insurance. If you are responsible for injuring somebody or somebody else's property, you will usually be covered for your legal liability up to £250,000.

Valuation

Remember that you have the option of insuring contents either on the traditional 'indemnity' principle, or on the new-for-old principle.

If you accept the former basis you can claim the cost of repairing damaged articles, or of replacing what has been lost or stolen less an amount for wear and tear and depreciation since their... see: Personal Liability


Personal And Business Finance 2017

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