|
 Extent
of Cover
The Road Traffic Act 1988 requires third party cover for anyone operating
a vehicle in a public space. Motorists may purchase more extensive cover –
such as third party fire and theft or comprehensive – but third party only
is the minimum legal requirement. Short term policies may be purchased at
each level.
Third Party Only
The basic legal requirement of drivers is to carry third party only
insurance. Even so, many motorists find this to be too limited. In case of
an accident, third party only cover will pay for damage to a third party's
person or property; the motorist's own damages are not insured, so any car
repairs will have to be paid out of pocket. For those who need temporary
cover, it may be tempting to purchase third party only, especially if they
need cover for merely a few days. Motorists should consider liabilities if
the worst should happen, however. While people may believe an accident is
unlikely, should one occur the ramifications can be significant.
Third Party Fire and Theft
A compromise between third party only and comprehensive, third party fire
and theft (TPFT) offers more cover than the legal requirement, but is
cheaper than the more extensive comprehensive option. As its name
indicates, TPFT covers both third party liability and the motorist's own
vehicle should it be stolen or damaged from attempted theft or fire. In an
accident, however, the motorist would still have to pay for damage to his
or her vehicle. Given that 1.7 million cars were stolen between 2006 and
2007, theft is legitimate concern. But there are also restrictions on
cover for theft. If the insurer finds a motorist negligent in protecting
against theft – by leaving keys in the car, for example – the cover will
not apply and the motorist will be responsible for all costs. That said,
TPFT is a good middle-ground for those who want more cover but don't want
to pay the expense of comprehensive.
Comprehensive
Whilst comprehensive is the most extensive, it's important for motorists
to realise that it doesn't cover all eventualities. Indeed, no insurance
policy covers everything, so 'comprehensive' can be a bit of a misnomer.
Yet comprehensive still offers the most extensive cover, insuring both
third party liability and motorists' damage to their own vehicles.
Comprehensive policies vary, but they may include extras such as
windscreen cover, audio cover, courtesy car cover, and so on. These may
also be available as optional extras for purchase.
Motorists who have comprehensive cover on their annual policies may find
that they include third party only cover if they drive another's vehicle.
Known as Driving Other Cars (DOC) cover, it's not included in every
policy, so those who believe they have it should check. Even if they are
covered, it may be beneficial to purchase a short term comprehensive
policy anyway, both for more extensive cover and to protect their annual
no claims bonus.
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