Private car policy structure and cover sections
What the exam tests
The anatomy of a private car policy: schedule, wording, certificate and endorsements, and the difference between comprehensive, third party fire and theft, and third party only.
Core rules
- Section 1 is liability to third parties: death or bodily injury and property damage, plus defence costs. It is the compulsory core.
- Own damage covers accidental damage, fire and theft on comprehensive; TPFT covers fire and theft only; TPO excludes own damage.
- Additional sections may include personal accident, medical expenses, windscreen, courtesy car, breakdown, legal expenses and foreign use. Each has limits.
- The schedule personalises the contract: vehicle, drivers, use, excess, endorsements and NCD. The certificate proves compulsory cover. The wording contains definitions, exclusions and conditions.
- Excesses are first-loss deductions; voluntary excess reduces premium. Endorsements restrict or extend cover.
Worked example
A comprehensive policy with a £300 excess covers a £1,800 repair after the insured reverses into a wall. The insurer pays £1,500. If the same car were TPFT, the claim would fail because collision damage is not fire or theft. If a courtesy car is provided only after an approved repair, the insured cannot claim a hire car merely because the repairer is delayed.
Traps
"Comprehensive" is a label, not a warranty that everything is covered. Driving other cars is often third-party only. Wear and tear, mechanical failure and tyre damage from road hazards may be excluded or limited. An endorsement can remove cover, so read the schedule. Do not confuse the policy excess with a third-party excess.