Let’s talk about motor insurance.
Along with Employers Liability Insurance (yes I know I bang on about it) Motor insurance for damage or injury to other people (Third Party Cover) is the only other compulsory insurance in the UK at the moment.
Some businesses have to have certain insurances to trade, but these are stipulated by regulatory bodies, not by statute law.
Let’s talk about COVER!
You will all be familiar with TPO – Third Party Only cover, which just about covers the legal requirement, then TPFT – Third Party Fire & Theft and Finally Comp – Comprehensive cover which covers damage to your own vehicle as well.
In truth nowadays TPO, TPFT are pretty defunct and almost all cover is Comprehensive. The main reason is that the biggest claims are the TP claims for injury, and Theft and Own Damage don’t add too much to the insurance cost.
Let’s talk about who can DRIVE!
Driving can be Insured Only, Insured & Spouse, Plus Other Named Drivers, then Any Driver, sometimes with an age stipulation, Over 21, 25 or 30. These restrictions often apply to sports models, or expensive vehicles. If imposed voluntarily they can reduce the premium.
Finally Let’s talk about USE!
This can be:
- Social Domestic & Pleasure Only, then you can add Commuting to and from work.
- Once you add Business Use by the insured in person, it becomes CLASS 1
- Then adding business of the employer or partner, it become CLASS 2
- Then adding commercial travelling it becomes CLASS 3
- For commercial Vehicle you can add Carriage of your own Goods
- Carriage of good for hire or reward – General Haulage
- Privet Hire for taxis and the like.
- Motor Traders get cover for Any Vehicle in their Care, Custody or Control
So that’s Motor Insurance in a nutshell.
If you have any questions just message me here
Have a great week 😎