Make sure your motor policy covers your home and assets

motor insurance protection, or third party cover, is a legal requirement in
most countries. It covers every driver’s responsibility to other people and
their property. It does not cover damage to you or your car following an accident.
For that, you need comprehensive insurance.

press release from BritCay states that a common view of third party motor
insurance is that it is simply to cover repairs to damaged cars. If you damage
someone’s car or property in a collision, you will be expected to provide
compensation to make it good. That could run into a few hundred or a few thousand

to people, on the other hand, is a completely different financial matter.
Claims resulting from injuries to others (third parties) usually take into
account factors like lifetime loss of income, and they can run into excess of
$5 million per individual. It is not unusual for third party insurance claims
to reach sums up to and exceeding $1 million per individual. In the Cayman Islands,
the law states that vehicle owners must carry a minimum $1 million per
individual third party liability coverage and $5 million in the aggregate (more
than one passenger in your own vehicle or third party vehicle/vehicles sustaining

major personal injury claim could cost you your home or other assets.

a motoring accident put your home at risk? It is possible. It depends on your
level of liability insurance. The injured person/persons, or dependents, will
make a claim against the driver of the car that caused either death or injury.
The driver’s insurance company meets the bill when the final amount is agreed.
However, the insurance company will only pay up to the limit of your third
party liability. If your third party liability is $1 million per person, a critical
injury claim for $2 million will mean you have to pay the balance of $1 million.

award of $7 million has already occurred in the Cayman Islands. Check your
third party liability cover and judge for yourself if this would be sufficient
to pay a major injury compensation award. Paying a few dollars less for your
insurance and accepting a risky level of third party cover could prove to be a
false saving.


How to look for the best value for your motor insurance.

to other people is why third party liability cover is mandatory. Other
components of your motor cover are optional. Theft, fire and comprehensive
insurance cover will allow you to receive compensation for damage or loss to
your vehicle from your insurance company. It is at this point that you will
find more variation in price as underwriting practices differ. You can save
money if you ask the right questions.

is the process by which your insurance company calculates the price of your
cover based on a number of factors like car characteristics, the coverage
selected (deductible, limit, covered perils), the profile of the driver (age,
gender, driving history) and the usage of the car (commute to work or not,
predicted annual distance driven). Some elements you cannot change, for example
your age.

you feel your quote is high, ask your insurance company how it could be
reduced. Accepting a higher deductible could lower your premium, but it means
you take the risk of having to pay more if you are involved in an accident. If
you need to make a claim, do your homework. If it affects your No Claims
Discount (NCD), it might be more cost-effective to pay a smaller bill and build
your NCD for a greater discount when you renew. If you have a few years’ NCD,
it is worth protecting. Some insurance companies allow you to pay a little
extra premium to fully protect your NCD if you make a claim.

the best way to save money is to shop around. Ask for quotes from different providers
and compare key points before making your choice. Make sure that you are
getting ‘best advice’ from banks, brokers or professionals under the Standards
of Guidance required by Law.

for quotes and compare the value of your insurance cover.