Third party policies
By law every vehicle, and the driver of the vehicle, must be insured as a minimum against damage caused to other people (third parties) and their property. This is called third party cover. If you have a third party only policy, and you cause an accident, your insurer will pay for all the losses of the third party, but none of your own.
Many third party policies also offer protection for the policyholder’s own vehicle against fire and theft. However, if someone else causes damage to your own car, your insurer will not be interested in managing your claim against the third party.
If you only have third party car insurance and you have to make a claim against another person who you believe was responsible for the accident, you should put the claim through a specialist car accident claims company click here
Comprehensive policies
Most vehicles are covered with a fully comprehensive policy. This provides the basic protection for third parties required by law, plus some protection for the policyholder’s own losses. However, like many aspects of motor insurance, the reality falls far short of the words. You will be able to claim for the cost of replacing or repairing your car, but you will also have to pay an “excess” which is written into your policy.
“Excesses” used to be quite low, but recently these have increased dramatically. Some policies carry an excess of £3,000, so if the cost of repair is £3,500 the insurer will only pay £500. In these cases you really have to think carefully before making a claim.
Even if the third party is at fault you still have to the excess if you claim through your own insurer, and then it’s up to you to try to get the money back from the third party, which can take months. That’s one good reason why it makes sense to have your claim managed by a professional claims management company click here
No claims bonus
Most comprehensive policies offer a “no claims bonus”. This is a discount from the standard premium which increases with each year you don’t make a claim, up to a certain limit. So, if you do make a claim, or A THIRD PARTY SUCCESSFULLY CLAIMS AGAINST YOU, your no-claims bonus may be lost or substantially reduced next time you renew the policy.
If you have an accident, your best chance of protecting your no-claims bonus is by using an intermediary click here.
Policy exclusions
Your comprehensive policy will not normally cover you for:
• Any personal injury you may have suffered
• Hospitalisation, rehabilitation or care
• The cost of a replacement vehicle while your own is unusable
• Loss of earnings or profit
• Out of pocket expenses
• Legal expenses incurred in pursuing a claim against a third party
• Your policy excess.
So, all in all, “comprehensive” is a bit of a con.
On the other hand, the third party would be able to recover all these costs from your own insurer if you caused the accident!
Remember, even if it is a 100% non-fault claim, you will still have to pay out and recover your excess from the third party yourself. By using an intermediary, the excess is effectively paid up front by the third party. Click here for more information