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 In
the Event of an Accident
If a motorist gets into an accident whilst driving a car covered by a
short term policy, the procedure is often similar to that of one's annual
insurer. Short term insurers provide a number to call and often require
motorists to contact them as soon as possible. All expectations are listed
in one's policy documents, so motorists should refer to those for more
specifics. It's wise to know what to do in case of an accident before an
accident happens.
Accident Procedure
Once an accident occurs, a motorist should get the other party's
information and contact the insurer immediately. The law requires that the
other party provide this information. With policy documents, insurers
provide a number to call, so motorists should keep that with them. Many
insurers want to know about an accident even if no claim is being made.
When contacting the insurer, motorists need to be able to reference their
policy number. Some insurers may require a written statement; others may
require only the oral statement. Evidence may be helpful – photographs
from the scene of the accident, exact time, weather conditions, contact
information for witnesses, and so on. Some insurers may advise against
taking photographs, which will be stated in policy documents.
Payments for a Claim
An accident covered by a short term policy may be handled several ways.
The insurer may elect to pay to repair the car, to replace the car
entirely, or to pay out an amount equal to the loss or damage. Insurers do
limit the total amount they will pay, potentially up to £50,000 or
thereabouts. However they do state that they will pay the lesser of either
the maximum or the market value of the car at the time of the damage. They
can reduce the amount they pay for wear and tear or other loss of value,
however. The contents of the car are usually not covered, though they may
cover audio equipment. Some insurers also offer extra cover for the
vehicle's contents, which motorists may purchase at their discretion. It's
important for motorists to know to whom these payments will go. Some
insurers will only pay the legal owner of the car; others may have a
different policy. Motorists purchasing short term cover should be
attentive to such details.
Replacing the Vehicle
As stated above, insurers can elect to replace the car entirely with a new
car of the same make and specification, if available. They may choose to
do so if the car was stolen and not recovered. They may also elect to
replace the car if it was purchased and registered for the first time
within 12 months of the claim and the cost of repairing it is more than
60% of the UK list price. Some insurers will not replace a car that is
subject to a leasing agreement and may also refuse to do so if the car is
under various other agreements. It's always wise to take note of such
policies when reading through the documents.
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