Car insurance policy documents are probably some of the most tedious things in the English language. A few years ago they also used to be incomprehensible. Recent legislation has forced insurance companies to simplify the language they use. Their policy documents may not rival airport thrillers for entertainment but at least you can now understand what they say.  

Obviously policy documents vary from one insurance provider to the next. However, we set out below some of the more usual things you would expect to find in your car insurance policy document.  

Definitions: the policy document will usually start with a list of definitions (ie a list of what various words mean legally). Some policy documents have this at the end. See out 'Glossary' page for more on this  

Basic contract: near the front of the policy document you will find the basic terms of the contract between you and the insurance company. The document will normally make a distinction between (i) the terms that apply generally to all policies written by your insurance company and (ii) the information you have supplied to the insurance company (eg make and model of car; previous convictions etc). The point of this distinction is this. If you have supplied incorrect information (which will be listed in a separate schedule) the insurance company will be able to argue that the basic terms of its cover do not, or may not, apply in your case.  

In terms of the generic cover the policy will state: 
  (a) that the insurance company undertakes to insure your car in return for payment by you of a premium for a specified period of time - typically a year
 (b) whether the policy is comprehensive or third party, fire and theft only
 (c) whether you have taken out any additional cover (eg legal protection or breakdown assistance cover)    
 (d) that the agreement is governed by, say, English law  

Specific provisions:  

The document will then go on to itemise more specifically what is, and is not, covered by the policy.  

All car insurance policies will cover you for:  
- any amount you are liable to pay legally if you kill or injure someone while driving
- any amount you are liable to pay legally if you damage someone else's property while driving
- the legal costs you incur if you have an accident
- the costs of emergency medical treatment  
in all cases subject to a specified maximum (say £20 million).  

This cover will also apply to anyone driving your car with your permission (provided you have notified the insurance company of their name beforehand) and any passengers in your car at the time of the accident. You may also be partially covered if you are driving someone else's car (but not a rental car) and you have an accident.  

Typically the policy will state that the cover only applies in the UK and during sea journeys to and from the UK. You may also be entitled to a lesser form of cover under the terms of your policy while abroad (particularly in the EU). However, before travelling abroad you are advised to check the precise wording of your policy carefully.  

As with all forms of insurance a typical car insurance policy contains a long list of exclusions and conditions (ie circumstances in which the insurance company will not pay out). These would tend to include the following:  
- where someone is driving the car without your permission
- where the accident or injury is caused or exacerbated by such things as war, riot, earthquake, pollution or pressure waves  

In addition the validity of your policy is conditional on you undertaking to do certain things such as:  
 - providing accurate information on yourself and your vehicle to the insurance company and keeping this information up to date
 - taking proper care of your car
 - reporting any theft, damage or accident promptly
 - following the insurance company's claims procedure to the letter
 - not having another insurance policy covering the same claim (if you do the insurance company will only pay its pro rata share of the claim)  

In addition a comprehensive or third party fire and theft policy (but not a third party only policy) would also cover you against damage to your vehicle caused by fire, lightening, explosions, theft or attempted theft. If you car is damaged or written off as a result of one of these occurrences, the insurance company would typically either:  
 - pay to have the damage repaired
 - replace your vehicle if they consider that is more cost efficient for them to do so;or
 - make a one off cash payment to you  

In addition the insurance company will also usually make further cash payments to you to cover the cost of replacing stolen or damaged audio equipment, child seats, door and boot locks and similar items.  

You would not be covered in these circumstances:  
 - for the amount of the excess you have agreed to pay
 - if the loss or damage resulted from any form of fraud
 - if the loss or damage resulted from you leaving the car unlocked or the windows open
 - if the loss or damage occurred when you left the keys in the ignition   Comprehensive insurance cover (but not third party or third party fire and theft cover) would also give you cover in a number of additional situations, the main ones being:  
 - where your car was lost or damaged other than as a result of fire, lightening, explosions, theft or attempted theft (in which case the conditions stated immediately above would typically apply)
 - where your windows or windscreen are damaged or the paintwork of your vehicle is scratched or otherwise damaged by broken glass   In addition, a comprehensive car insurance policy would typically provide the following benefits:  
 - the right to compensation if you become disabled as a result of an accident
 - medical expenses associated with any such disability
 - the costs of accommodation if your car is involved in an accident
 - the costs of counselling if required following an accident  
in all cases subject to certain restrictions and exemptions.  

The following tend to be exceptions which apply to all types of car insurance policy (ie circumstances where the insurance company will not pay out):  
 - loss or damage caused by normal wear and tear
 - electrical or computer breakdown or faults
 - damage caused to tyres
 - any decrease in the value of the vehicle following a repair covered by an insurance policy
 - loss or damage to car phones or mobile phones
 - loss or damage to a trailer or caravan being towed by your car    

Finally, a car insurance policy will usually conclude with information on how to make a claim and on what to do in the event of an accident. You should read these sections and follow the procedures set out carefully before making a claim.