Motor and Personal Lines Insurance
Motor insurance
Candidates must understand compulsory third-party cover, third party fire and theft, and comprehensive cover. Know the Road Traffic Act requirements and the role of the Motor Insurers' Bureau for uninsured and untraced drivers. Understand no-claims discount, protected NCD, telematics, agreed value versus market value, and the treatment of total loss claims (repair, replace or cash settlement).
Personal lines
Know household cover (buildings, contents, personal possessions, legal expenses), travel cover, pet and health products. Understand underinsurance in contents, single article limits, seasonal increases, escape of water and accidental damage extensions.
Traps in questions
- Assuming comprehensive cover pays for everything - exclusions and excesses still apply.
- Forgetting that NCD is a discount, not a legal right, and can be reduced after a claim.
- Missing that breakdown and legal expenses are usually separate products, not core motor cover.
Worked example
A vehicle with a market value of £12,000 is written off. The policy has a £500 excess and no agreed value. Settlement is £12,000 less £500 = £11,500, subject to any outstanding finance and salvage rights. If the sum insured was £10,000, the insurer pays the lower of market value and sum insured.