'business use' on insurance policy - how would they know?
Discussion
Some insurance policies have option of adding 'business use' to their allowed list of uses for the vehicle under varying levels e.g. class 1, occasional business use.
If you only had SDP + commuting to your usual place of work on a policy, but then had to put in a claim for something whilst driving to a meeting off site or whilst parked up nearby, the insurer could presumably decide not to pay out as you were using the car 'for business' at the time. My question is, how on earth would the insurer know/prove that you were engaged in 'business use' as opposed to just taking the day off and going for social/pleasure drive?
Anyone fallen foul of insurance companies over 'use' of your vehicle before?
If you only had SDP + commuting to your usual place of work on a policy, but then had to put in a claim for something whilst driving to a meeting off site or whilst parked up nearby, the insurer could presumably decide not to pay out as you were using the car 'for business' at the time. My question is, how on earth would the insurer know/prove that you were engaged in 'business use' as opposed to just taking the day off and going for social/pleasure drive?
Anyone fallen foul of insurance companies over 'use' of your vehicle before?
Interesting question. I suppose really the purpose of the driving shouldnt come into it, you're a person driving a car on the road, irrespective of where you're going or what you're using it for. Really it should just be based purely on mileage.
As for how they'd know, well it'd probably be very difficult to actually prove. When I had to go to a different office one day for work I said I'd take my own car and I got asked if it has business insurance. Its 30 miles away, do the roads suddenly change when you're driving for work? Maybe we all have to drive on the wrong side or the road is made out of jelly or something. Anyway I rang the insurers and they said they werent bothered and told me to go ahead which was good enough for me. I also remember Direct Line included 'occasional business use' in their standard policy anyway, meaning you only needed to buy business insurance if it was actually a work vehicle like a van for instance.
You do hear the odd bonkers story in the media like the takeaway worker who was on his way home and dropped a customers order off as he lived on route to his own house and it was deemed 'business use' when stopped by the police for a faulty light. If he was doing the same journey without the food in the car he'd have been fine, but such weird stories dont seem too common.
As for how they'd know, well it'd probably be very difficult to actually prove. When I had to go to a different office one day for work I said I'd take my own car and I got asked if it has business insurance. Its 30 miles away, do the roads suddenly change when you're driving for work? Maybe we all have to drive on the wrong side or the road is made out of jelly or something. Anyway I rang the insurers and they said they werent bothered and told me to go ahead which was good enough for me. I also remember Direct Line included 'occasional business use' in their standard policy anyway, meaning you only needed to buy business insurance if it was actually a work vehicle like a van for instance.
You do hear the odd bonkers story in the media like the takeaway worker who was on his way home and dropped a customers order off as he lived on route to his own house and it was deemed 'business use' when stopped by the police for a faulty light. If he was doing the same journey without the food in the car he'd have been fine, but such weird stories dont seem too common.
My employer requires business use cover and a copy of the certificate if i wish to claim mileage for business use.
I have never really understood this as vehicles used for a policing purpose do not require insurance. So if i am doing business miles in my employment as a police officer then surely this is a policng purpose?
I have never really understood this as vehicles used for a policing purpose do not require insurance. So if i am doing business miles in my employment as a police officer then surely this is a policng purpose?
If you had a minor knock for a couple of K costs I doubt an insurer would expend much effort investigating.
If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
EK993 said:
If you had a minor knock for a couple of K costs I doubt an insurer would expend much effort investigating.
If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
This. They'll take your money on the basis of utmost good faith, however if you are telling porkies, you've paid for some A4 pages with some toner on it at the very best.If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
Edited by Panayiotis on Tuesday 22 May 01:12
gumshoe said:
Use for business purposes normally isnt that much more anyway.
Which makes you wonder why the companies bother with it at all, why not just cover us for everything? When running quotes on my car I added 5k of business use out of curiosity and it added £40 a year. For the sake of £40 why not just scrub round it?martin84 said:
Which makes you wonder why the companies bother with it at all, why not just cover us for everything? When running quotes on my car I added 5k of business use out of curiosity and it added £40 a year. For the sake of £40 why not just scrub round it?
Because we as customers would move insurers for a fiver.maxb335 said:
Some insurance policies have option of adding 'business use' to their allowed list of uses for the vehicle under varying levels e.g. class 1, occasional business use.
If you only had SDP + commuting to your usual place of work on a policy, but then had to put in a claim for something whilst driving to a meeting off site or whilst parked up nearby, the insurer could presumably decide not to pay out as you were using the car 'for business' at the time. My question is, how on earth would the insurer know/prove that you were engaged in 'business use' as opposed to just taking the day off and going for social/pleasure drive?
Anyone fallen foul of insurance companies over 'use' of your vehicle before?
Because with an insurance company investigator involved, you wouldn't be out of your coma, before he found out you'd been travelling to a work related meeting, etc. Just pay the tiny bit extra, and stop putting our premiums up any more, please !!!If you only had SDP + commuting to your usual place of work on a policy, but then had to put in a claim for something whilst driving to a meeting off site or whilst parked up nearby, the insurer could presumably decide not to pay out as you were using the car 'for business' at the time. My question is, how on earth would the insurer know/prove that you were engaged in 'business use' as opposed to just taking the day off and going for social/pleasure drive?
Anyone fallen foul of insurance companies over 'use' of your vehicle before?
Panayiotis said:
Because we as customers would move insurers for a fiver.
Well fair point. I think most of us just take the cheapest policy on offer. Insurance companies are pretty useless and will take about 74 years to deal with any claim you make, so the only reason to buy it is to satisfy the ANPR computers.martin84 said:
Which makes you wonder why the companies bother with it at all, why not just cover us for everything? When running quotes on my car I added 5k of business use out of curiosity and it added £40 a year. For the sake of £40 why not just scrub round it?
It may only be £40 for you but it's proportional to your risk - it was several hundred pounds for me when I asked about it a couple of years ago. gumshoe said:
Bear in mind to that you are UNINSURED on such a trip and if the Police have reason to suspect you are on a business related trip you (suit/paperwork etc they are not stupid!) you;ll get 6 points and a large fine.
Use for business purposes normally isnt that much more anyway.
You are not uninsured, but your liability may be limited to third party if it is discovered that you were on site to site business mileage, try not to be such a scaremonger Use for business purposes normally isnt that much more anyway.
EK993 said:
If you had a minor knock for a couple of K costs I doubt an insurer would expend much effort investigating.
If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
WTF is a toothcomb?If you were involved in a serious accident with a large loss the Insurer would appoint a claims investigator to go through the incident with toothcomb and there would be a (high) chance they could uncover the fact you were driving for business purposes.
ED209 said:
My employer requires business use cover and a copy of the certificate if i wish to claim mileage for business use.
I have never really understood this as vehicles used for a policing purpose do not require insurance. So if i am doing business miles in my employment as a police officer then surely this is a policng purpose?
Yes and No I have never really understood this as vehicles used for a policing purpose do not require insurance. So if i am doing business miles in my employment as a police officer then surely this is a policng purpose?
If you were using the car for a Policing purpose and were stopped or involved in a collision and did not have cover, you might want to rely on the exemption to avoid prosecution (although your force might in turn say that as you were not acting in accordance with force Policy, you were not carrying out a lawful duty...).
In practice, you will find every one of the cars in your force fleet is insured, because although the law allows an exemption, the force would not want the liability of risk, considering the dangers inherent in Police work.
Likewise, the reason for the Policy will be, although the law might allow you an excemption, the force would not want to cover the cost of a collision if you were involved in an incident whilst driving "on duty".
Corporate Manslaughter issues may arise too.
Jayfish said:
You are not uninsured, but your liability may be limited to third party if it is discovered that you were on site to site business mileage, try not to be such a scaremonger
Ah, No. Class of Use is one of the things that the RTA allows insurers to exclude third party liability on. It is picked up elsewhere, but (like RTA) cover, can result in the amount being claimed back from you.
I.e the Insurer is forced to pay, and the sues you for the amount.
In practice, the majority of employers will ask to see proof of business cover before agreeing to you using your own car. Duty of care and all that.
The same route "could" be used to show business miles....expense claims for the miles.
Other than that, unless plod are involved you may well get away with it for a small prang. Anything larger, and there may be an investigation. After all, it is hardly difficult to query "time of accident" with weekday and profession and ask the question. It would be asked on the claim form anyway.
Gassing Station | General Gassing | Top of Page | What's New | My Stuff