Insurance. What would happen if ...
Discussion
The OH phoned her insurance company this evening to extend her cover for business use as she has to use her car for an upcoming work trip. After she'd sorted it out she started asking me questions, 'cause obviously I am the Google of all car knowledge 
Anyway, one of her questions made me curious ...
Suppose Person A and Person B are colleagues travelling on a work trip in Person A's own car.
Person A causes an accident which results in injuries to Person B.
Person A then reveals that their car isn't covered for business use.
Who is liable for any cost arising from Person B's injuries?
Anyway, one of her questions made me curious ...
Suppose Person A and Person B are colleagues travelling on a work trip in Person A's own car.
Person A causes an accident which results in injuries to Person B.
Person A then reveals that their car isn't covered for business use.
Who is liable for any cost arising from Person B's injuries?
It won't end well.
If the insurance didn't pay out - it's bad enough that something you did has damaged another persons life.
You would feel even more s
tty that there isn't any money to help in their quality of what remains of their life.
Business insurance premium is cheap.
For the cost of a couple of takeaways for the family - you are covered.
I never understand why people try to scrimp on what is a moral essential.
If the insurance didn't pay out - it's bad enough that something you did has damaged another persons life.
You would feel even more s
tty that there isn't any money to help in their quality of what remains of their life.Business insurance premium is cheap.
For the cost of a couple of takeaways for the family - you are covered.
I never understand why people try to scrimp on what is a moral essential.
When I worked in insurance I got a call from an insurer about an accident. Policyholder was a schoolteacher and had crashed his car injuring (minor fortunately) three schoolkids who he was driving to a football match at another school. He had SD&P & commuting use but claimed that he'd called us (the broker) to add business use.
I actually managed to find the recording of the call where he was quoted an extra few quid to add business use, had a row with the clerk about whether carrying schoolkids was business use or not then told her to stuff it because he wouldn't be carrying kids after all.
Probably the most expensive phone call he ever made as the insurers went after him for the cost of the claim.
I actually managed to find the recording of the call where he was quoted an extra few quid to add business use, had a row with the clerk about whether carrying schoolkids was business use or not then told her to stuff it because he wouldn't be carrying kids after all.
Probably the most expensive phone call he ever made as the insurers went after him for the cost of the claim.
TwigtheWonderkid said:
Leptons said:
It's a fking con really isn't it. Business use. What a load of st.
What a bizarre comment. I would have thought the use of the vehicle is a perfectly reasonable criteria for assessing risk and premium, along with a host of other factors. king con really isn't it. Business use. What a load of st.There is a hell of a difference between going to and from one place of work and going to multiple places, carrying business colleagues etc etc
Troubleatmill said:
This.
There is a hell of a difference between going to and from one place of work and going to multiple places, carrying business colleagues etc etc
It's a car travelling on a road. What difference does it make if you're carrying a colleague rather than friend? It's bullsThere is a hell of a difference between going to and from one place of work and going to multiple places, carrying business colleagues etc etc
t. You've paid to insure the car, what you're doing at the time of driving it should be irrelevant. Looks like society has been brainwashed into accepting it though...I see the point. You insure the car for whatever eventuality. Why should driving to and from a place of business be any different to popping down the shops or picking up the mother in law / neighbours kids from school etc?
I can understand exclusions like the Nordshclief, however.
Btw, mine was easy, I just phoned them up and they added it free of charge
I can understand exclusions like the Nordshclief, however.
Btw, mine was easy, I just phoned them up and they added it free of charge
Leptons said:
Troubleatmill said:
This.
There is a hell of a difference between going to and from one place of work and going to multiple places, carrying business colleagues etc etc
It's a car travelling on a road. What difference does it make if you're carrying a colleague rather than friend? It's bullsThere is a hell of a difference between going to and from one place of work and going to multiple places, carrying business colleagues etc etc
t. You've paid to insure the car, what you're doing at the time of driving it should be irrelevant. Looks like society has been brainwashed into accepting it though...
Watch the money roll in.
Leptons said:
It's a car travelling on a road. What difference does it make if you're carrying a colleague rather than friend? It's bullst. You've paid to insure the car, what you're doing at the time of driving it should be irrelevant. Looks like society has been brainwashed into accepting it though...
Passenger liability. If you're carrying colleagues, the pay out if they are injured could be a lot more than friends, depending on your occupation. Suppose you're a football agent. Or you run a model agency.t. You've paid to insure the car, what you're doing at the time of driving it should be irrelevant. Looks like society has been brainwashed into accepting it though...Then there's the actual use. Journalists who may be rushing to a story, social workers who may be parked in less desirable areas, as with parole officers. Plus business trips in general are often more time critical. You don't want to be late for a client.
I bet there are many good reasons for the differentiation.
SteveSteveson said:
Id be more worried about driving without insurance, which is the case if your driving outside the conditions.
Rubbish. As long as you have cover for third parties you are covered under the RTA. Unless the company would have declined cover they would be unable to void it from inception. Therefore you would have this cover. I know off no car insurance underwriter that excludes business cover and who won't quote for it. I am sure there are some that do, however you would have to look hard to find one.
Police tried pulling this stunt on a mate of mine and seized his car. Instead of prosecuting he got compensation.
Most insurers will decline business use for certain occupations (pizza delivery for example) so it's quite possible for an insurer to declare a policy void in these circumstances.
I guess that employers do have a duty of care and really should insist on on seeing proof of business use on an employee's policy. I know that my wife's employer does this because she's the one who has to see it. At the time I left the industry in 2005 it was common four Councils to ask for a letter, even though they'd already been shown the certificate. I have no idea why they'd ask for this but it caused a few arguments when we pointed out that they already had written proof.
I guess that employers do have a duty of care and really should insist on on seeing proof of business use on an employee's policy. I know that my wife's employer does this because she's the one who has to see it. At the time I left the industry in 2005 it was common four Councils to ask for a letter, even though they'd already been shown the certificate. I have no idea why they'd ask for this but it caused a few arguments when we pointed out that they already had written proof.
Define business use
Ferrying a few colleagues to a conference or client meeting or delivering goods in a van.
Different risks.
My job was peripatetic, but all I did was drive to different offices round the country. No more risk than going to see my friends.
Providing annual mileage is declared, what is the difference?
Ferrying a few colleagues to a conference or client meeting or delivering goods in a van.
Different risks.
My job was peripatetic, but all I did was drive to different offices round the country. No more risk than going to see my friends.
Providing annual mileage is declared, what is the difference?
There is a difference or they would charge extra for it. Cue wails of "it's a con can't you see that?"
Believe it or not, insurers base premiums on claims experience so if most of them charge extra for business use then it must be resulting in more or higher cost claims. They don't just add 10% so they can all swan off to Bermuda for their annual conference.
In the good old days, insurers used to throw in business use for free but as business became more cut throat they found that they could discount sd&p use to get more business. So you pay more now for business use.
Some companies still do business use for nowt in the same way as some load you for one speeding conviction and others don't but you may find that the company who doesn't charge extra is more expensive anyway.
The best rule with insurance is to tell them your circumstances and let them work out the cost. Don't like their price? Shop elsewhere. It's your right as a consumer.
Believe it or not, insurers base premiums on claims experience so if most of them charge extra for business use then it must be resulting in more or higher cost claims. They don't just add 10% so they can all swan off to Bermuda for their annual conference.
In the good old days, insurers used to throw in business use for free but as business became more cut throat they found that they could discount sd&p use to get more business. So you pay more now for business use.
Some companies still do business use for nowt in the same way as some load you for one speeding conviction and others don't but you may find that the company who doesn't charge extra is more expensive anyway.
The best rule with insurance is to tell them your circumstances and let them work out the cost. Don't like their price? Shop elsewhere. It's your right as a consumer.
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