Introduction to UK Auto Insurance Policies
Policies and the level of cover they provide are as numerous and varied as the companies that underwrite and sell them. However there is generally a standard structure and format, which the majority of policies take. They can roughly be split into 6 sections:
Heading - showing the full name and address of the insurance company underwriting the auto insurance policy.
Preamble - which covers the following points - that a premium has, or will be, paid and that the proposal form is the basis of the contract.
Operative clause - detailing the types of event that the auto insurance policy provides covers against; typically comprehensive, third party fire and theft or third party only.
Exceptions clause - exceptions or exclusions to the cover. For example no cover provided if the vehicle is driven by anyone other than the drivers specified in the certificate of insurance.
Conditions - conditions, which apply for the cover to be operative. For example the insured must notify the auto insurer or their agent of any incident, which could result in a claim being made under the auto insurance policy. For auto insurance a condition may stipulate that the vehicle is kept in a roadworthy condition and that the auto insurer has the right to reasonably inspect the vehicle.
Schedule - to be read in conjunction with the auto insurance policy and the certificate of insurance and gives details specific to the insured such as name, and period of auto insurance. It refers to the applicable sections within the auto insurance policy document and details endorsements applicable to the auto insurance policy. For example excesses for young drivers or a monetary limit for damage to audio equipment kept within the vehicle.
Changes to the cover or vehicle are noted within the schedule and a new certificate issued to comply with legal requirements. It may also contain a note of the motor insurance premiums payable.
The Certificate of Auto Insurance
The certificate of auto insurance is an integral part of the auto insurance policy and gives details specific to the insured. The certificate gives proof of cover to at least the minimum legal requirement in the UK and is required in the event of an accident, to obtain road tax or if otherwise requested by the police. It includes for example, vehicle details, level of cover, specified drivers, period of insurance, use of vehicle and any excesses.
Because of the items needed to issue a auto insurance policy document, the auto insurer or their agent provides cover notes when cover commences to comply with the legal requirements to hold a certificate until the full auto insurance policy is issued. Temporary cover notes are also issued with renewal notices. They can be handwritten or printed and are valid for a period of normally 30 days at which point either the auto insurance policy or a continuation cover note is issued.
In the event of cancellation of the auto insurance policy the certificate must be returned to the auto insurer or their agent within 7 days.
