Before you sign your acceptance contract on the motor vehicle insurance policy, know what the policy offers, and more importantly, know what restrictions and limitations there are. You do not want to be in a situation and claim, ”but I was not told.” Read the fine print, it specifically states you accept all terms and conditions of the policy. Let us therefore enlighten you a bit and look at just a few limitations and or restrictions that could be on the motor vehicle insurance policy.

The most glaring and obvious restriction will be the amount of the pay out on the policy should total loss or damage occur. The motor vehicle will only be covered to the limit of its replacement or market value. For example, a motor valued at one hundred thousand cannot and will not be covered for one hundred and twenty thousand. So the premiums to be paid shall be determined in the main by such. The premiums should reduce over time as the market value of the motor vehicle will reduce over time.

Also restricting the policy value shall be other factors such as the age of the driver, the location where the motor vehicle shall be parked, the installation of an alarm and or immobiliser system and the number and ages of secondary drivers. These all will be used to determine the extent of the cover and the premiums to be paid. The risk to the insurance company is determined in the main by these factors.

Another important restriction that the intended policy holder should bear in mind is the restrictions on the pay out as far as damage to the motor vehicle is concerned. Certain policy covers will not cover damage to all parts of the vehicle, for example mechanical damage may not be covered. There may also be limitations on the amount for specific damage to the motor vehicle for example a replacement value to a bumper may be higher than that covered for in the car insurance.

An important restriction that the policy holder should also consider and think carefully over, is the limited amount of pay out in certain circumstances, mostly where the blame lies with the insured in an accident. The amount of excess will also be determined by blameworthiness. At the time that that damage occurred, the insurance company shall also look at who was driving the motor vehicle. There shall be no pay out if the driver was not a designated driver or a licences driver (hi-jacking and vehicle theft may be an exception in this scenario).

The above is only a very brief and limited summary on the restrictions and limitations of a motor vehicle insurance policy. For an indebt analyses, consult the various companies to check who has the least limitations, be for you sign up for the policy. Your web search or broker will help you do this.

Happy and safe motoring.

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