The conditions in a car insurance contract explain the duties as well as the rights of both parties to the contract, namely the insurance company and the insured person. The conditions are rules that should be followed by both parties and are legally binding once agreement has been reached and the contract signed.

Conditions qualify certain things which the insured party must do or not do before cover can take place as well as after cover has been granted. Conditions also clearly set out the rights of both the insurer and the insured. It will also clarify basic legal principles that are applicable to the insurance policy.

Conditions are sometimes split in a policy between general conditions—which pertain to all policies, and specific conditions applicable to the contract in question. The conditions of a contract contain very important information. Not abiding by the conditions can render your car insurance null and void.

Examples of conditions included in a car insurance contract:

Responsibility of the insured:

• To provide true and complete information.
• To take reasonable care and precautions to prevent or minimize loss.
• To inform the insurer if you change your address.
• To lodge claims within the specified period and to follow the laid down procedure.

Responsibility or the insurer:

• To repair, reinstate or replace a damaged car.
• To accept responsibility to make good any valid claim.
• To give the insured sufficient notice of any changes to the policy, including an increase in premiums.

Note: These are merely examples of a long list of conditions that may apply, refer to your own policy document for details of all conditions.