Is this insurance any good?

bigpat

I was quoted approx £301 by 'Renew Insurance' to insure our 2004 Vectra. When I clicked on the 'Buy now' button I spotted they had added various optional extras, like roadside assistance, which I don't need. Intending to untick everything to get it back down to the £301 I was quoted, I suddenly noticed that 'Personal accident' at £19.99 was one of them.

Does this really mean that "standard" FULLY COMPREHENSIVE insurance no longer includes personal injury cover? I checked the policy wording and it says

Personal accident
What is covered
• If you or your husband or wife are accidentally killed or injured while getting into, travelling in or
getting out of your car (or any other car you do not own), we will pay compensation if the accident
results in death, total and permanent loss of sight in an eye or total physical loss of a limb at or above
the ankle or wrist. The death or loss must occur within 90 days of the accident.
What is not covered
• Compensation for death of or injury to a person under 16 or over 75.
• More than £5000 in any one period of insurance.
• If you or your husband or wife have more than one policy with the Insurer, we will only pay out under
one policy.
• Compensation for death or injury occurring while the person is under the influence of alcohol or drugs.

Does this mean we have to lose a limb or an eye to get anything? If I break a bone, suffer bloodloss etc. am I not covered? I assume i'd be covered if an accident was the fault of a third party, but in the event that it's my fault (never happened yet - touch wood) do I not get anything?

And what's that about people under 16 or over 75? I have two teenagers under 16 and my parents are both over 75. Are they not covered either?

I could be wrong but I don't ever remember seeing this in insurance policies before. Are Renew just pulling the Ryanair trick of quoting you really cheap for half the service, knowing you'll have to pay extra to get what you really want?

Quentin

Most motor insurance policies do have personal accident/death cover (though not much - £2500 is about the norm). So you need to take out separate insurance to cover yourself in the event of you having an accident that injures/kills you and is your fault.

Your passengers would be covered under your third party liability, so would need to pursue a claim against you were they to be injured/killed as a result of being injured whilst a passenger in your car.

mikey72

I think to answer
"Is this insurance any good?"

judging from the fact most things are add ons, and cover appears to be limited even then, you have to ask what will they be like in a claim, or what else with be missing or excluded in the small print? What's the next quote like?

bigpat

Right so my passengers count as my third parties, even if they're my own family, travelling in my own car? I must admit that never occured to me before. I sort of assumed the third party had to be in another vehicle, or a pedestrian or whatever. OK I can see that makes sense, I suppose, but then why specifically exclude those ages?

Example: If - God forbid - my 13yo daughter should suffer a head injury, she's covered as my 3rd party, then why exclude under 16s in the wording? They can't legally drive anyway, so couldn't ever be named drivers. Therefore, wouldn't someone under 16 *ALWAYS* be a 3rd party? I just find this whole thing puzzling.

Good point about other quotes - thank you. If they're clearer in their Ts&Cs about injury cover and are less than £20 dearer, they may be better. And I think there were three or four other within about £15.

dogbot

Anyone other than you or your insurer is a third party - what is puzzling?

You can't sue yourself, and you insurer is providing indemnity to you for your liabilities to another party. Any other party, including your direct family, can sue you. Age is irrelevant in practice.


Your motor insurer is offering you 2 core types of cover under a comprehensive motor policy

1) Cover for any accidental damage to your motor vehicle, theft of that vehicle (including damage done related to attempted theft) and fire. This is subject to an excess. You are insuring your financial interest in your motor vehicle here. They provide indemnity to you against financial loss.

2) Indemnity for third party liabilities you incur as the driver of the vehicle insured under the policy (or, for some policies also inluding any other policy you drive) (also, most comp policies also cover any legal liabilities incurred by passengers - e.g. passenger opens door into side of passing car).

For the third party liability section - there are legal compulsory minimum levels of cover ("RTA" or "RTA Minimum") - unlimited liability for causing death or injury to another party is included here. Private motor policies then typicaly enhances the level of cover offered for liability to third party property (cars, walls, bridges, bikes, trains, animals... whatever) to £5million or so.


The personal accident sections found in some policies is just an added benifit insurers chuck in to market the product to you - just like guarangeed repairs, a courtesy car, legal protection, driving other cars extention etc etc etc.

The UK private motor insurance market is the most competitive insurance market in the world and as a result has become mostly price driven - insurers look to strip out added covers to reduce the price they can offer. They can also sell these as add-ons to generate some profit allowing them to subsidise the motor cover cover of AD+Third party to subsidice the huge losses they experience on those core covers.

In your case, you have found Renew, who are a broker. They sell an insurer's product and take some comission, then they offer the various add-on products to you that they buy in "wholesale" from other insurers.