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  • FIRST POST
    • EpicFishFingers
    • By EpicFishFingers 5th Jul 17, 10:49 PM
    • 9Posts
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    EpicFishFingers
    What is the Claim Payout Limit on Car Insurance in the UK, generally?
    • #1
    • 5th Jul 17, 10:49 PM
    What is the Claim Payout Limit on Car Insurance in the UK, generally? 5th Jul 17 at 10:49 PM
    I can't seem to get a straight answer on this.

    In the US, it seems you can buy policies that only pay out a limited amount on a claim. Cheaper policies might only pay out $10k towards a claim so if you got such a policy and smashed into a brand new Merc, you'd potentially have to pay the rest.

    Being a young driver I have an affinity with tin-pot no-name insurers with rubbish cover, but this would be an obvious dealbreaker for me if it turns out they'd only insure me up to a set amount.

    So is it set in law in the UK that there is no claim limit, or is it always arbitrarily high like £5 million?

    I can't find anything about it in my policy documents, so how much am I actually insured for?
    If I crash into some flashy £300k supercar will my insurance just have to suck it up and pay for the damage or are they going to pull out clause 11b-1.5 from page 237 of the policy summary which states "cover limit of £100k"?
Page 1
    • Crazy Jamie
    • By Crazy Jamie 5th Jul 17, 11:50 PM
    • 2,104 Posts
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    Crazy Jamie
    • #2
    • 5th Jul 17, 11:50 PM
    • #2
    • 5th Jul 17, 11:50 PM
    Someone may be able to correct me if I'm wrong on this, but I believe cover under compulsory insurance (i.e. third party car insurance cover) is set at 100% of the claim, so there is effectively no limit. There may well be limits for additional elements of the cover (as as those that cover you), but not for the third party aspect.
    "MIND IF I USE YOUR PHONE? IF WORD GETS OUT THAT
    I'M MISSING FIVE HUNDRED GIRLS WILL KILL THEMSELVES."
    • Andy L
    • By Andy L 6th Jul 17, 9:35 AM
    • 8,370 Posts
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    Andy L
    • #3
    • 6th Jul 17, 9:35 AM
    • #3
    • 6th Jul 17, 9:35 AM
    The Selby Train crah (the Land Rover that went onto the line) has cost his insurers ~£30million so far
    • Quentin
    • By Quentin 6th Jul 17, 9:39 AM
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    Quentin
    • #4
    • 6th Jul 17, 9:39 AM
    • #4
    • 6th Jul 17, 9:39 AM
    Someone may be able to correct me if I'm wrong on this, but I believe cover under compulsory insurance (i.e. third party car insurance cover) is set at 100% of the claim, so there is effectively no limit. There may well be limits for additional elements of the cover (as as those that cover you), but not for the third party aspect.
    Originally posted by Crazy Jamie
    There is a limit for damaged property claims (£1,200,000)


    Though no limit on injury/death claims from third parties
    Last edited by Quentin; 09-07-2017 at 9:20 AM.
    • Aretnap
    • By Aretnap 6th Jul 17, 11:17 AM
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    Aretnap
    • #5
    • 6th Jul 17, 11:17 AM
    • #5
    • 6th Jul 17, 11:17 AM
    As above the Road Traffic Act sets a minimum of £1million cover for property damage (and unlimited cover for death/injury) - Section 145 (4) (b)

    In practice most policies have a higher limit of cover for property damage - £20 million is reasonably standard - but if you're worried about crashing into a Bugatti Veyron or a van full of Van Gogh paintings then you may want to check the policy documents before you buy. It should be set out in plain language in a document which is considerably shorter than 237 pages (eg as on page 19 of Admiral's documents).

    (You should really read the policy documents anyway - it's always struck me as a little odd that people will pay over a thousand pounds for an insurance policy without bothering to read about what it actually covers)
    • Quentin
    • By Quentin 6th Jul 17, 12:06 PM
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    Quentin
    • #6
    • 6th Jul 17, 12:06 PM
    • #6
    • 6th Jul 17, 12:06 PM
    As above the Road Traffic Act sets a minimum of £1million cover for property damage (and unlimited cover for death/injury) - Section 145 (4) (b)
    Originally posted by Aretnap
    Typo in there!


    Read "maximum" for "minimum"
    • stator
    • By stator 6th Jul 17, 12:53 PM
    • 5,612 Posts
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    stator
    • #7
    • 6th Jul 17, 12:53 PM
    • #7
    • 6th Jul 17, 12:53 PM

    (You should really read the policy documents anyway - it's always struck me as a little odd that people will pay over a thousand pounds for an insurance policy without bothering to read about what it actually covers)
    Originally posted by Aretnap
    Not really, it's something you legally have to have, so the terms and conditions aren't necessarily something you care about, as long as it complies with the law.
    It's things like PPI you want to read carefully to make sure it covers what you think it covers.
    Changing the world, one sarcastic comment at a time.
    • mattk_180
    • By mattk_180 6th Jul 17, 1:25 PM
    • 355 Posts
    • 257 Thanks
    mattk_180
    • #8
    • 6th Jul 17, 1:25 PM
    • #8
    • 6th Jul 17, 1:25 PM
    Typo in there!


    Read "maximum" for "minimum"
    Originally posted by Quentin

    I read the article to say it doesn't HAVE to pay over £1m, but that doesn't necessarily say it can't.


    As stated above, most policies tend to cover unlimited death/injury and £20m damages. Taken from my own policy;


    The insurer will pay amounts including claimant’s costs that you are legally




    liable to pay for:




    The death of or bodily injury to any person caused by an incident involving


    the car; and


    Damage to someone else's property caused by an incident involving the


    car up to a maximum of £20,000,000 (including all legal and other






    expenses) for any one claim or number of claims arising from one cause.




    • FlameCloud
    • By FlameCloud 6th Jul 17, 1:54 PM
    • 1,766 Posts
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    FlameCloud
    • #9
    • 6th Jul 17, 1:54 PM
    • #9
    • 6th Jul 17, 1:54 PM
    The material damage limit of a car crash will rarely be that high in any event - it'll be the consequential bi losses that racks up.
    • Aretnap
    • By Aretnap 6th Jul 17, 2:21 PM
    • 2,657 Posts
    • 2,100 Thanks
    Aretnap
    Typo in there!

    Read "maximum" for "minimum"
    Originally posted by Quentin
    Erm no - the policy must provide a MINIMUM of £1,000,000 cover - if it provides less it's not an RTA-compliant policy.

    If insurers want to offer more cover than that they can (and most do) - there is no maximum.
    • Quentin
    • By Quentin 6th Jul 17, 3:56 PM
    • 32,083 Posts
    • 16,169 Thanks
    Quentin
    OK - but the RTA does limit it to £1,200,000!


    (We were talking RTA compulsory TP cover limit)
    Last edited by Quentin; 09-07-2017 at 9:21 AM.
    • tempus_fugit
    • By tempus_fugit 9th Jul 17, 4:12 AM
    • 128 Posts
    • 164 Thanks
    tempus_fugit
    I can't see any limit mentioned. It says that there is no requirement for cover above £1m to be given, so effectively the minimum cover for property damage is £1m. Aretnap is right as far as I can see.
    • maddogb
    • By maddogb 9th Jul 17, 11:55 AM
    • 432 Posts
    • 65 Thanks
    maddogb
    I can't see any limit mentioned. It says that there is no requirement for cover above £1m to be given, so effectively the minimum cover for property damage is £1m. Aretnap is right as far as I can see.
    Originally posted by tempus_fugit

    think it's all down to perspective, yes it's the minimum cover but it's also the maximum that can be recovered if the insurers stick with minimum (statutory) requirements.
    • tempus_fugit
    • By tempus_fugit 9th Jul 17, 1:23 PM
    • 128 Posts
    • 164 Thanks
    tempus_fugit
    think it's all down to perspective, yes it's the minimum cover but it's also the maximum that can be recovered if the insurers stick with minimum (statutory) requirements.
    Originally posted by maddogb
    Not so much perspective as mixing up the terms "limit" and "minimum". Yes, the £1m is a "limit" on those policies are restricted to that cover, but policies can have more than that as their limit. Therefore, the "limit" on third party property claims that a policy can have mustbe at least £1m, ie that is the "minimum" limit. (Bloody hell I'm beginning to sound like Sir Humphrey Appleby. )
    Retired at age 56 after having "light bulb moment" due to reading MSE and it's forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
    • alchemist.1
    • By alchemist.1 9th Jul 17, 3:11 PM
    • 850 Posts
    • 654 Thanks
    alchemist.1
    Watch out for a high policy excess (in the thousands on some policies) and some of them even applicable to third party claims.
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