Car insurance - industry standard?

byjimini

Hi all,

Just renewed my car insurance in good time, but think I may have to cancel it. Browsing through the policy booklet, Budget Insurance won't cover me for misfueling nor for damage caused by fire, theft or attempted theft. My wife, a named driver, is also excluded from driving other cars.

Is this a standard industry thing or does it vary between policies? RAC are similar from skimming their booklet. Is it a case of going for a premium policy rather than the cheapest quote?

Hoenir

byjimini said:

Budget Insurance

Is this a standard industry thing or does it vary between policies? 

The type of insurance you've obtained is priced accordingly. You get the cover you pay for. 

400ixl

Named driver not being covered to drive other vehicles is pretty standard, as is mis-fuelling not being covered. Have you ever had a policy where the named driver is covered for any other vehicles, can't say I ever have, even on a premium policy.

Not being insured for theft, attempted theft or fire is not normal, are you sure that isn't covered?

I assume this is a fully comprehensive policy?

DullGreyGuy

byjimini said:

Hi all,

Just renewed my car insurance in good time, but think I may have to cancel it. Browsing through the policy booklet, Budget Insurance won't cover me for misfueling nor for damage caused by fire, theft or attempted theft. My wife, a named driver, is also excluded from driving other cars.

Is this a standard industry thing or does it vary between policies? RAC are similar from skimming their booklet. Is it a case of going for a premium policy rather than the cheapest quote?

RAC is budget rebranded so no surprise they are similar

Third Party Only wouldn't cover Fire or Theft but TPFT and Comp will. I think you've misunderstood that Section 2 excludes Fire, theft and attempted theft because this section is just about accident damage. If you go on to read Section 3 it is what provides the cover on those three risks. 

Aretnap

Indeed, policies will tend to have three main sections:

(1) A section that covers liability to other people
(2) A section that covers fire and theft (may be split into two sections
(3) A section that covers accidental damage but not for and theft

If you have comprehensive cover then all three sections will apply, if you only have TPFT then only (1) and (2) will apply. Fire and theft may be excluded from section (3) to avoid duplication, but they will not be excluded from the whole policy unless you have third party only cover. 

Some policies do cover misfueling, some don't. Direct Line for example do cover it under accidental damage. Breakdown insurance may also provide some misfueling cover - though probably restricted to the cost of flushing out the fuel tank, not for damage caused by actually driving with the wrong sort of fuel.

I've never had a policy that covers anyone other than the policyholder to drive other vehicles. If it's important to you then properly high end insurers like Hiscox and Chubb do offer driving other cars cover to all named drivers but you have to drive a pretty fancy car, and sometimes buy their expensive home insurance too, before they'll even give you a quote.

dunstonh

rowsing through the policy booklet, Budget Insurance won't cover me for misfueling nor for damage caused by fire, theft or attempted theft. My wife, a named driver, is also excluded from driving other cars.

You get 
a) third party
b) third party, fire and theft
c) comprehensive.

You appear to be reading the sections on third party.  But have you actually bought third party or something else?

DullGreyGuy

dunstonh said:

rowsing through the policy booklet, Budget Insurance won't cover me for misfueling nor for damage caused by fire, theft or attempted theft. My wife, a named driver, is also excluded from driving other cars.

You appear to be reading the sections on third party.  But have you actually bought third party or something else?

No, as @Aretnap and I said, the policy book is formed in sections with TPO, TPFT and Comp including different sections. In this particular case section 1 is third part liability, 2 is own vehicle damage (accident), 3 is Fire & Theft, 4+ are things like personal possessions, glass, personal accident etc. 

Section 2, which only applies to Comp, explicitly excludes fire and theft in the policy book however its covered by section 3 which is included in TPFT and Comp. Section 2 will typically also have a Young/Inexperienced Drive additional excess which won't apply to Section 3