Restrictions on Short Term Insurance
Short term and temporary policies include more restrictions than do annual policies. Since these policies span a short time period, insurers want to guarantee that drivers and vehicles don't represent an unwise risk for them.
Insurers have many restrictions about which vehicles they will cover. They restrict the car's value, refusing to cover cars worth more than £40,000 to £50,000. Some also refuse to cover vehicles worth less than a certain amount, sometimes around £1,500. Cars can't be modified, excepting some factory modifications or modifications for disabled motorists and passengers. Many insurers won't cover classic cars for short term policies. They may have a maximum number of seats – usually 8 – and a maximum weight – around 3.5 tonnes. Often cars can't be owned or hired out by a vehicle rental company. Some insurers require cars to be registered and housed in the UK. There are many other restrictions, varying by insurer.
Drivers must also abide by certain restrictions, most importantly their driving history and age. Insurers may decline to offer cover if a motorist has more than 8 penalty points over the previous 3 years. More than 2 fault claims in a 3-year period is also likely to disqualify a motorist. Insurers will look unkindly on any periods during which a motorist was disqualified for driving, any prosecutions for theft, fraud, drugs, alcohol, or driving offences, any pending police enquiries, amongst many other factors. When addressing age, most insurers won't offer cover to motorists under age 23, at least for temporary cover. This age group is the riskiest for insurers because they get into a disproportionately high number of accidents, especially fatal accidents. Insurers may also set a maximum age limit.
Insurers limit the amount of cover on short term and temporary policies. They may cap third party property damages to £5,000,000, for example. They also have more exclusions than do annual policies. Exclusions based on use are especially important; if a driver indicates the vehicle will be used for recreation and an accident occurs during a business use, the short term policy will not cover the accident. Policies often exclude the costs of loss or damage if a vehicle is confiscated by the government, stolen due to the motorist's negligence, or if an accident occurs when another driver is driving. There are many more exclusions that commonly apply, a list of which can be found in the policy documentsso the usual advice is still worth following : READ THE POLICY CAREFULLY!
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