How to make a complaint

If you have a problem with your insurance policy or an insurance claim, write
to your insurer first, giving details of your complaint, and how you would like it
to be resolved. If you are not satisfied with the response, make a formal
complaint, using their official complaints procedure.

If you are not satisfied with the outcome of the formal complaints procedure,
consider taking the complaint further. All insurers must be covered by the
rules of the financial watchdog, the Financial Services Authority (FSA). This
means that if you have a complaint about an insurer, you can take it to the
Financial Ombudsman Service. This is a free service available to
policyholders who have already followed their insurer's complaints procedure.
The Financial Ombudsman will try to resolve the complaint through mediation.
If the dispute cannot be resolved this way, the Financial Ombudsman will
begin a formal investigation. The final decision given at the end of this
investigation is binding on your insurer, but if you do not agree with it, you are
free to take your insurer to court. For more information about the Financial
Ombudsman, you can visit their website at www.financial-ombudsman.org.uk,
or phone them on 0845 080 1800.
If your insurer is a member of Lloyds, contact Lloyd's Complaints
Department on: 020 7327 5693. If you are not satisfied with the outcome of
this complaint, complain to the Financial Ombudsman.

If you have tried all the options for resolving your complaint through the
complaints procedures, but have not met with success, or if your insurer is
based outside the UK, you may want to consider taking legal action. However,
you should only consider going to court as a last resort. This is because the
amount of compensation a court may award you could be reduced if you have
not tried other ways of resolving the problem before taking legal action.

Before taking legal action, you need to consider whether you have sufficient
evidence. If you are taking your insurer to court, you will have to prove that
your claim is covered by your insurance policy, and you may have to provide
expert evidence. Alternatively, you may want to consider taking the other
driver to court, if they were at fault. You will also need to find out whether the
person or company you are suing is solvent.

Your local Citizens Advice Bureau can give you advice on insurance
problems, and on how to take legal action. To search for details of your
nearest CAB, including those that can give advice by e-mail, visit
www.citizensadvice.org.uk.

Motor cycle insurance

There are two different types of motor cycle insurance:

Specified cycle policy
This is the more common type of motor cycle insurance policy. It insures you
to drive one specific motor cycle.

Rider policy
This type of policy insures you to drive any motor cycle up to a certain cc
rating, with the owner's permission.

Motor cycle insurance is usually limited to one person only. If you want
someone else to drive your motor bike then you must either name them on
your policy, or make sure that they have their own motor cycle insurance.
There is usually a compulsory excess on motor cycle insurance, and you do
not generally get a no claims bonus.

Driving abroad

You will have third party motor insurance to drive in any European Union
(EU) country, as long as your policy was bought from any EU-based insurer.
This includes those based in the UK. However, third party cover is often
inadequate, and it is advisable to contact your insurer to arrange extra cover.

Your policy may also give you third party cover to drive in some non-EU
countries. Check with your insurer to see if the country you are travelling to is
included in your policy. If it is not, you will need to take out extra cover.

Your insurer can issue you with a green card to show that you have
increased insurance cover. Some countries abroad require you to have a
green card.
If you hire a car in the USA, check the level of insurance cover you have
been given. If it is only the basic minimum, it may not be enough to cover the
full costs of any claim. You should buy extra cover, including collision
damage waiver insurance. If you do not have collision damage waiver
insurance, you may have to pay for any damage to the hire vehicle, even if it
is not your fault.

How to make a claim if your car has been in an accident

If you have an accident:
• never admit that it was your fault at the scene of the accident, as
this could make your policy invalid
• exchange names, addresses, and insurance details with the drivers
of the other vehicles involved, and get the details of any
independent witnesses. If someone refuses to give you details
about themselves or their insurance, your insurer may be able to
trace them through the registration number of their car
• tell your insurer about the accident straight away, even if you do not
intend to make a claim. If you do not make a claim for the accident,
you will not risk losing your no claims bonus
• if someone has been injured you must produce your insurance
certificate (or cover note) to a police officer or anyone else with
reasonable grounds for wishing to see it. If you cannot do this at the
scene, you must produce it at a police station within seven days. If
you don't do this, the police can seize your vehicle and sell it
(although you can claim back the proceeds of the sale).

Third party, and third party fire and theft policies
Third party and third party fire and theft policies do not cover accidental
damage to your car, but they may cover damage or personal injury to the
other party, depending on who is to blame for the accident. Always make a
claim against the other party first, and allow the insurer to decide who is
responsible for the accident. If they decide that you are responsible, you will
have to pay for the repairs yourself.

To make a claim from the other driver, write to them saying that you intend
to make a claim from them. Say that you hold them responsible for the
accident and ask them to tell their insurer. Tell your own insurer that you are
claiming from the third party. The other driver must report the accident to their
own insurer before the claim can be dealt with. The insurer can only act on the
instructions of their own policy-holder. You can find out if there is an insurance
policy covering the other driver's vehicle, by looking up the Motor Insurance
Database. You can access this by contacting the Motor Insurer's
Information Centre (tel: 0845 165 2800, website: www.miic.org.uk).

If the driver was uninsured, or cannot be identified, the Motor Insurers
Bureau (MIB) may be able to settle your claim. In certain circumstances, an
insurer may be able to deal with your claim, even where the driver is
technically uninsured. To find out more about these circumstances, contact
the MIB on 01908 830001.

Comprehensive insurance policies
If you have a comprehensive insurance policy, you should claim from your
own insurer. Be aware that you may lose your no claims bonus if your insurer
is unable to recover the money from the other driver's insurer. You will still
need to claim from the other driver's insurer for any injuries you have suffered
or any losses which are not covered by your insurance policy.

To make a claim, get a claim form from your insurer, or write to the other
driver or their insurer, giving full details of the accident and the driver's policy
number. Tell the insurer about any independent witnesses, and send them
any witness statements as soon as possible (you will need to provide
estimates if you are claiming on the other driver's insurance). If you used a
broker or an agent to buy your insurance policy, they may help you to prepare
your claim. Be sure to keep copies of all documents, including letters, claim
forms and statements.

Don't arrange to have your car repaired without the insurer's permission, as
you will be responsible for the cost. The insurer may ask an engineer or a
motor claims assessor to inspect your car, and use an approved repair firm to
carry out the work. Alternatively, you may be asked to get estimates yourself,
and send them to your insurer for approval before you can go ahead with the
repairs. You may have to pay part of the repair costs yourself if your vehicle
ends up in a better condition after it has been repaired than it was before.

How to make a claim if your car has been stolen

If your car has been stolen, tell your insurer and the police immediately. Your
insurer will wait a few weeks before settling your claim to allow time for the car
to be found. Check your policy to see whether it covers the cost of hiring
another car during this time. If you were paying your premium by instalments,
you may have to carry on paying, even though you have no vehicle to insure.
If your car is found after your claim has been settled, it will belong to your
insurer. If your car is not found, your insurer will offer to pay you the market
value of the car, which is the amount you could have sold it for before it was
stolen. This payment may bring your policy to an end, depending on the
policy. You will not have the rest of your premium refunded, unless this is
included in your policy. If you are not satisfied with the offer, try to get
evidence that the car is worth more, by using car price guides or prices of
similar vehicles in local papers. If your negotiations fail, you may wish to take
further action. For information on how to take further action, see How to make
a complaint in this fact sheet.

When you may not be covered by your insurance

You may not be covered by your insurance if:-

• someone else, who is not included in your insurance policy, drives
your car
• your car is found to be unroadworthy. Third party claims should
still be accepted
• you have bought a stolen vehicle, even if you did not know it was
stolen when you bought it. Third party claims should still be
accepted
• you are driving someone else's vehicle
• you do not have a valid driving licence. Third party claims should
still be accepted
• your insurer believes that you have been partly to blame for an
accident, it may only pay part of your claim
• your insurance does not cover all your losses, for example time off
work, personal injuries, vehicle hire, or excesses . You may be able
to claim these expenses from the other driver, but you may have to
go to court and may need legal advice
• your insurer has gone out of business and is unable to meet their
claims You may be able to get compensation from the Financial
Services Compensation Scheme (FSCS). Contact the FSCS on:
020 7892 7300. If your insurer is a member of Lloyds, contact the
Lloyds' complaints department on: 020 7327 5693.

Choosing motor insurance

Before you buy motor insurance, decide who will be driving your car, and how
much cover you would like. There are three main types of motor insurance:

Third party insurance
This is the minimum amount of insurance cover that you must have by law for
your vehicle. Third party insurance only covers you for damage to someone
else's vehicle or property, or injury to someone else in an accident which
involves your car. This includes accidents caused by your passenger. If your
vehicle is damaged in the accident you will have to pay for the repairs
yourself.

Third party, fire and theft insurance
This includes third party cover and, additionally, damage to or loss of your car
by fire or theft.

Comprehensive insurance
This includes third party, fire and theft insurance. In addition, it will also pay for
repairs to your car. There is a range of extra cover that some policies provide,
including:
• cover for your own death or injury, or that of your partner or other
member of your family, up to a limited amount
• cover for your personal belongings if they are stolen from your
vehicle or damaged
• cover for your medical and legal expenses
• hiring a replacement vehicle.

The cost of an insurance policy is called a 'premium'. Ask for quotes from
several insurers to help you to get the best deal for your circumstances. You
will need to compare:
• what each policy covers, and any exclusions (risks which are
specifically excluded, for example, allowing drivers under 21 to drive
your car)
• the amount of any excess. This is the first amount of any claim, for
example the first £50, that you will have to pay yourself. Some
policies allow you to pay a higher excess in return for a cheaper
premium. Most young drivers (under 21 or 25 depending on the
policy), and inexperienced drivers are expected to pay a
compulsory excess which is higher than usual
• discounts offered, for example a 10% discount for older drivers
• the no claims bonus which increases for every year that no claims
are made on your policy, up to a maximum amount. Most insurers
will let you transfer the discount, if you want to change your insurer.
You will also need to compare the amount by which your no claims
bonus would be reduced if you made a claim
• any policy restrictions, for example, only named drivers are
covered.