Motor Insurance FAQs

Why Motor Insurance?
What is 'Excess'?
Who can drive my vehicle?
Why do I have to give the names of the persons who will drive my car when I want open cover?
How does my no claim discount work?
Does my policy provide a grace period?
How can I minimize the cost of my insurance?
What are the types of motor cover?
Is it a problem if I insure my vehicle for private purposes and during the period of cover I begin to use my vehicle in my business?
If I fit a new music system onto my car, will it be covered?
If I decide to sell my car can I "give" the purchaser the insurance I bought for it?
My windscreen was recently broken. If I make a claim will it affect my no claim discount?
What is The Proposal Form?
Why do I get a Certificate Of Insurance?
I have purchased Comprehensive Cover however the top of my certificate mentions Third Party Cover. Why?

Why Motor Insurance?
Under the Motor Vehicles Insurance (Third Party Risks) act of 1988, a minimum level of insurance is compulsory if you intend to operate a vehicle on the St. Lucian roads. Being caught driving a vehicle that is not insured is an offence.
In addition, it is in your best interest to ensure that whether through someone else’s fault or yours an accident or loss does not cause you financial hardship.
Insuring your vehicle is a means of protecting yourself.

What is ‘Excess’?
The excess is the portion of a claim. In Motor, the cost of repairing or replacing your vehicle, specified as a percentage of the value of the vehicle, that you are responsible for paying, whether or not you are at fault. The Company will pay amounts over and above this figure up to the sum insured. We do not apply an excess to fire claims.
If you are involved in a minor accident, you may feel that you should not report it as it could cause your premium to be increased. However, failure to report an accident is a breach of the terms of the policy. If the other party chooses to claim on their insurance company who then seek repayment from us, your rights to protection under the policy may have been forfeited.
It is important to report all accidents and avoid unnecessary problems.

Who can drive my vehicle?
Your Certificate of Insurance, Cover Note or Policy Schedule provides detailed information on the person(s) permitted to drive. There are, at times, limitations on the age and driving experience your drivers should have. Please look out for these.
Your vehicle is a prized possession, be selective about the persons you allow to drive it. A careless driver could cause your premiums to increase.

Why do I have to give the names of the persons who will drive my car when I want open cover?
In our efforts to evaluate your risk exposure it is important for us to know the ages, driving experience, claims experience and occupations of your drivers. The data we have collected over the years allows us to analyze the risk.

How does the no claim discount work?
This is a discount you earn for not making a claim under your policy. As long as you do not make a claim it increases annually until it reaches a maximum percentage. It is important to note that even if you are not at fault in an accident, once you have made a claim, your discount will be reduced. It will be reinstated if we recover our expenditure.
Accident free driving is the best way to keep your premiums at a reasonable level.
Your No Claim Discount is not transferable to another person. However, you can transfer it from one of your vehicles to another one owned. However, it is not automatic that upon the purchase of the second vehicle you will get the same No Claims discount.

Does my policy provide a grace period?
No. The Law specifically prohibits us from granting you a grace period. Your cover expires at midnight on the date stated on your Certificate of Insurance. Therefore, if the day after the expiration of your cover is a weekend or Public holiday you must ensure your cover is renewed early.

How can I minimize the cost of my insurance?
You could restrict the driving of your vehicle to two named persons.
If you insure all your vehicles with one insurer you will be entitled to other vehicle discounts. And you can simply maintain a good driving record.

What are the types of motor cover?

1. Comprehensive
This provides cover in respect of accidental loss or damage to your vehicle caused by collision, overturning, and malicious acts. You are also covered in respect of your legal liability for damage to property, which belongs to others, and injuries caused to other persons. This cover is subject to the limits stated in your policy.
Whilst this policy does not cover every eventuality, we recommend it as it is the most extensive available.
2. Third Party Only
You are covered in respect of your legal liability for damage to property, which belongs to others, and injuries caused to other persons. It does not cover damage to your vehicle. This cover is subject to the limits stated in your policy.

Is it a problem if I insure my vehicle for private purposes and during the period of cover I begin to use my vehicle in my business?
Yes. Our decision to insure you and, the premiums you are charged is based on how you intend to use the vehicle. If you need to change the use you must advise us.

If I modify my car to boost its performance, will it affect my premiums?
If you decide to modify your car to make it more powerful or faster we need to know. Unfortunately, such modifications increases the risks associated with your car and consequently the premiums.

If I fit a new mucis system onto my car will it be covered?
Accessories, which were not fitted by the original manufacturer, are not automatically covered. It is therefore your responsibility to obtain proof of the value of these items and ensure that they are specifically insured.

If I decide to sell my car can I "give" the purchaser the insurance I bought for it?
The insurance contract is a personal one. This means that our decision to insure you, and the premiums you were charged was based solely on our assessment of you. You therefore cannot transfer this cover to another person, not even your child. The position is the same if you are giving the car as a gift.

My windscreen was recently broken. If I make a claim will it affect my no claim discount?
Your motor policy covers breakage of your windscreen or window up to a specified amount. There must be no other damage or injury apart from scratches caused by the shattering of the glass. Once this is the case the excess is not applicable and it will not affect your no claim discount.

What is The Proposal Form?
This form is used by Insurers to gather information about the risk to be insured. For motor insurance some of the things insurers would be interested in are the person who owns the vehicle, the vehicle itself and the drivers. This will enable them to determine whether or not to accept a risk and the premium to charge. All the questions must, therefore, be answered truthfully and any material facts should be disclosed. A material fact is any information an Insurer would regard as likely to influence their assessment and acceptance of a risk.

Why do I get a Certificate Of Insurance?
Under the law, the Certificate of insurance is required as proof of the existence of insurance. It must be returned if the policy is suspended or cancelled. If it is lost, you should advise us immediately.

I have purchased Comprehensive Cover so why does the top of my certificate mention Third Party Cover.
The law, which makes motor insurance compulsory, is called the Motor Vehicle Third Party Risks Law. The reference to third party is simply acknowledging that you have satisfied the legal requirements.