Direct Electronic

This is in fact the function being fulfilled by Direct Electronic but we are utilising a computerised quotation system, supported by nearly all the big names including Commercial Union, General Accident, Guardian, Lloyds and Norwich Union.

For example if motor insurance has a restriction that the driver is the policyholder and his spouse (partner) only, and they now allow their teenage son who has very little previous driving experience to drive, it is material, and the insurers should be told.

Similarly if a house is left unoccupied for more than 30 days it is usually advisable to tell the insurer.

Comprehensive Cover usually includes extensions such as loss of rent or cost of alternative accommodation, breakage of glass as well as liability to the public for any damages for which the policyholder may become liable for bodily injury or loss of or damage to property belonging to others.

It is sometimes possible to obtain cover for fire and theft only which is less expensive.

Contents cover is basically restricted to the premises insured although the cover is often extended for a limited amount to hotel bedrooms or other houses.

If cover is required simply for losing something, or where theft cannot be proved (for example in regard to watches, cameras or jewellery) it is wise to take out separate insurance for Personal Belongings.

It also covers injury to passengers, injury to third parties (people outside of the car or in other cars) and third party damage (damage to other cars or property).

This compares with more restricted cover such as third party fire and theft (often referred to as TPFT) or third party only (TP). In the latter the damage to the policyholders own car is not covered but in the former fire and theft is added. Restricting the cover obviously reduces the premium.

This does mean however that if the claim is for less than ú50 or ú100, there will be no claim under the policy and if it is for ú200 it will be reduced by the above amounts.

Compulsory excesses are usually increased in respect of motor for persons under 21 years or if the licence has been held for less than 1 year.

Buildings and contents excesses could be increased if, for example, a building was in a subsidence area.

Both forms of insurance tend to have increased excesses if there have been several claims.

In regard to home and contents, new for old cover can be obtained from certain insurers. Thus if carpets or curtains are destroyed by fire, the insurer will pay for new replacements (assuming they cannot be repaired), providing the sum insured is for the full replacement value. In both motor, and home and contents, where new for old is not provided, the guiding principle is that the policyholder is entitled to be put in the same position after the loss as before it occurred.

For example 30% in year one up to 70% in year 5.

In the event of one accident the discount is usually revised downwards but following a further claim free year it will be increased again by one step.

In the event of more than one accident there are various penalties dependant upon the insurer concerned.