General insurance: motor, home and travel

Q1. Which statement best describes “Premium”?

1. This is the maximum amount the insurer will pay under the policy.
2. This is continuing the policy for another term by paying the premium before it lapses.
3. This is the part of a loss you pay yourself before the insurer pays.
4. This is the amount you pay to keep an insurance policy in force.

Q2. Which statement best describes “Third-party cover”?

1. This is the vehicle’s agreed value, which is the maximum payout if it is stolen or declared a total loss.
2. This is a discount on premium for each claim-free year.
3. This pays for damage to your own vehicle, such as from an accident, fire or theft, as the policy states.
4. This is the compulsory motor cover that pays for injury or damage you cause to others.