Chubb changes insurance policies
Owners of older cars that suffer partial damages can now be compensated for the subsequent loss in value.
This follows the introduction by Chubb of its Diminution in Value (DIV) cover, which pays the client the difference between a car’s market value before and after a repair as well as the repair costs.
DIV cover applies to cars more than 15 years old and is one of a series of covers introduced to Chubb’s motor policies.
Key benefits include: if a client’s insured car is partially damaged, Chubb will pay the amount required to repair or replace the damaged parts; Chubb will pay the difference between the market values before and after the repair; and maximum cost is up to 100% of the covered loss or £250,000 or 20% of the amount of the sum insured, whichever is the lesser amount.
Chubb has also introduced Lease or Finance Gap Cover to support drivers who buy new cars on credit that are stolen or written off. In an industry-first, the policy covers the unpaid debts due on the lease or finance of a car.
However, the policy would exclude overdue payments at the time of loss, financial penalties for wear and tear or high mileage and cost for additional items such as extended warranties, carry over balances from previous loans and credit life insurance.
In addition, Chubb motor insurance policies will also cover student fees if a person is injured/killed in an insured vehicle, as well as cover for the costs associated with pets or other animals.
Tara Parchment, UK and Ireland manager of personal risk services, said, ‘Chubb’s pioneering new covers give our clients even more certainty about how they would be treated after an incident. We understand that even after using first-class specialists to repair damage, the intrinsic value of a car may be affected- whether it’s due to the lack of original parts or the mere fact that the car has been repaired.
‘We also know that the re-sell value of our clients’ cars is important to them and, to some, their cars are considered unique pieces of art. Our service doesn’t stop at paying to restore or replace a car but extends to protecting our clients’ assets and finances.’