There are three levels of general motor vehicle insurance in the UK:

third party

third party fire and theft

fully comprehensive

The level of your insurance cover determines the compensation available to you or other people for injury, loss or damage resulting from an accident.

Third party cover is the basic European Union (EU) legal requirement. This ensures that compensation for injury to other people, including your passengers, damage to or loss of other peoples' property resulting from an accident caused by you is available. None of the costs incurred by you as the result of an accident are covered. Most insurers offer extra levels of cover beyond the basic legal requirement.

Third party, fire and theft provides the same cover as third party but also includes fire damage and theft of the vehicle.

Fully comprehensive provides the same cover as third party, fire and theft and additionally covers any damage to your vehicle. Most insurers include extra levels of cover to this category, such as roadside recovery schemes, vehicle breakdown repairs and certain legal expenses.

Every motor insurance policy issued in the EU must provide the minimum insurance cover required by law in any other EU country. In many countries, even those within the EU where a UK insurance certificate is acceptable, you may be asked to produce a Green Card. The Green Card is not an insurance cover. It simply provides proof, in those countries where the Green Card is valid, that the minimum third party liability cover required by law in the visited country is in force.

If your insurers are unable to issue a Green Card, find alternative suppliers on the MIB website. The Motor Insurers' Bureau operates the Green Card system in the UK.

Goods in transit insurance

In some countries, you may need to produce a certificate of insurance for the goods carried to avoid paying a premium.

It is also important to ensure that the risk of goods being damaged, delayed, perished, lost or stolen in transit is properly managed.

( linda )13 Oct,2011

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