Duty of disclosure:
It is vital to know and remember that because an insurance company has not asked you a specific question, does not mean that you do not have to disclose relevant information which could effect your insurance.

We are all obliged to give any information to our insurance company that may be relevant in their decision to insure our car and the price that they will charge for the policy.

Failure to do this can result in claims being refused or claims payment reduced. It is always better to declare any information 'up-front' to avoid problems later.

Policy:
This is the contract between you and the insurance company. Basically your end of the contract is that you have answered all questions 'honestly' when insuring with your company. Their end is that they will pay all claims under the terms of the policy on that basis.

Policy schedule:
This normall contains the various statements you made when insuring your car. It explains the type of cover you are entitled to within the policy (comprehensive, third party fire and theft or third party only) It will describe who else, if anyone, can drive your car. It will also describe what purposes your car can be used for (ie business use, commuting etc).

Market value:
In the event of a total loss accident, your car will be valued on condition, mileage etc and a offer is made in line with a Glass's guide valuation (in practice it usually pays to refuse the first offer, as the next offer, if they make one, will inevitably be upward).

Partner:
This means your wife, civil partner, person you live with on a permanent basis, it never means your business partner.

Trailer/caravan:
If your policy covers you to tow a trailer/caravan, it has to be properly constructed and roadworthy, within the relevant laws applying to towing.

Certificate of motor insurance:
This is very important, you need to show this to the Police if required as proof of having correct insurance, also it is needed to apply for your 'road tax' (faxed copies etc are not acceptable).

Worth up to £39.

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