Indemnity Insurance

Indemnity Insurance means that the insurance cover will pay the amount necessary to put you back in the same financial position as you were before the claim was made. This is a technical term insurance companies make use of which basically means that they will recover your damage.

You may hear or read in policy statements terms such as: "We will indemnify you for the following damages..". Indemnity insurance starts to operate from the precise time identified in the policy to which you have agreed and for which you have paid the necessary premium.

The premium you pay for indemnity insurance is determined by:

- the probability of a loss depending on the attributes of the drivers, the car, and the risk address.

- the cost accrued in the event of a loss (e.g. repair, legal costs, temporary arrangements such as courtesy car etc.).

The law requires the insurer to provide the insured with a certificate of car insurance that specifies the nature of the cover provided.

- third party, fire and theft

- comprehensive

The minimum legal requirement for driving a car in the UK is to be insured against third party injury or damage claims.