Quick insurance question - any experts on here

[trickyrobo 0]

We have a situation in work were as our Operations manager has a car he owns for which he has Fully Comp Insurance including social/domestic and bussiness use and has a paid up 2k a year car park space as a company perk. The idea being that us as his staff can drive the car for local bussiness use dropping off bits and bobs and pick ups etc. Currently we drive this car on our own policies as we are all fully comp ourselves but what exactly our we covered for in a crash. My policy says I can drive other peoples car with their permission 3rd party but is this correct? Basically I'm asking if I crash his car and its my fault I take it all that is covered is the person who I crash into's car on my insurance. My managers car if wrote off would not be covered in anyway? A friend said surely this can't be right, what if your boss owned a Bentley you surely can't drive round in that 3rd party on your insurance? I thought his point made sense. Btw my manager is a decent bloke and is only doing this to cut costs etc as we were spending a fortune on local cabs etc. Can anyone clear this up and sorry it was a bit long winded

[swiftkid 1]

Yes, you are correct in what you are saying. You are only covered third party which means if you crash and its your fault then only the other persons car will be repaired. Theres a guy on here and edition38, username martinb that works for HIC, might be worth having a chat to see what options you have.

[Stonejag 10]

Yep, that's how third party cover works - if an accident is your fault then your insurance covers all the costs except yours. In this case if you crashed your boss's car then any damage to it wouldn't be covered. I think they do the drive-other-cars-third-party thing to discourage you from doing it all the time!

 

Your manager should probably set up a corporate policy worded as 'any employee of company x' (like the company I work for) or one with you all on as named drivers. It probably won't be cheap either - you need a company that actually specialises in company policies rather than trying to bodge it with a consumer one. Our policy is with Zurich, and worded as:

 

"1. Description of vehicles

Any motor vehicle the property of or on hire or loan or leased to the Policyholder other than:

i) a motor cycle, motor cycle and side car or moped

ii) a vehicle of the mechanically propelled plant type

iii) a steam driven vehicle

2. Name of policyholder: [company name]

3. Effective Date of the Commencement of Insurance for the purposes of the relevant law: [date]

4. Date of Expiry of Insurance: [date]

5. Persons or Classes of Persons entitled to drive:

Any person on the order or with the permission of The Policyholder.

Provided that the person driving holds a licence to drive the vehicle or has held and is not disqualified from holding or obtaining such a licence.

6. Limitations as to use:

a) Purposes in connection with the business of the Policyholder

b) Social, domestic and pleasure purposes.

c) Towing a trailer of a disabled mechanically propelled vehicle as permitted by law.

 

The Policy does not cover:

Use for i) hire

ii) Conveying passengers for reward;

iii) Transporting goods for reward;

iv) Racing, pace-making, speed testing, participating in any rally, reliability trial or competition."

 

The whole thing fits on a side of A5 (with some more legalese at the bottom and on the rear side) - they use Zurich but it may or not be a good deal. All you have to do is decide exactly what's excluded - you can thrash it out with the insurance co and the more you exclude (eg commuting / social / domestic etc) the less it'll cost. Probably possible for the car owner to keep his own insurance on it too so he's covered for commuting etc - not sure how it all works out but they can probably work something out for you :)

 

HTH.

 

Stone

[Storm Guy 0]

Not sure of the exact wording of your or your ops mans policy, but I recently wanted to drive my Dad's car and take him to the airport in his car. He's Fully comp (inc business use) in his car, so am I on mine (inc business use) - but thought I'd check with my Insurance (aviva) if I'm covered third party driving his car. What you describe seems to be the commonly thought principle. BUT according to Aviva you can only drive a car in an emergency situation and be covered third party (driving to the airport, even on a day or so's notice is not classed as an emergency, as there is deemed to be sufficient time to notify ins co.). I was advised that my Dad's policy would need me as a named driver.

 

So unless all staff are named/'permitted' drivers on the certificate, you will (as already stated above) not be covered for damage to the driven vehicle, and may well not even be covered 3rd party. Your ops manager needs to check (and show you to safeguard you) his insurance policy's section re 'Liability of other persons driving or using Your Car" - (and what conditions do not apply!)

[Dollyman 10]

Not sure of the exact wording of your or your ops mans policy, but I recently wanted to drive my Dad's car and take him to the airport in his car. He's Fully comp (inc business use) in his car, so am I on mine (inc business use) - but thought I'd check with my Insurance (aviva) if I'm covered third party driving his car. What you describe seems to be the commonly thought principle. BUT according to Aviva you can only drive a car in an emergency situation and be covered third party (driving to the airport, even on a day or so's notice is not classed as an emergency, as there is deemed to be sufficient time to notify ins co.). I was advised that my Dad's policy would need me as a named driver.

 

So unless all staff are named/'permitted' drivers on the certificate, you will (as already stated above) not be covered for damage to the driven vehicle, and may well not even be covered 3rd party. Your ops manager needs to check (and show you to safeguard you) his insurance policy's section re 'Liability of other persons driving or using Your Car" - (and what conditions do not apply!)

 

Sounds reasonable also wonder wheter the insuracne would be valid for what would probably be classed as business use

 

Cheers

Jeff

[trickyrobo 0]

Storm Guy has summed up what my mate said in a nutshell, basically everyone thinks you can do this driving third party on your own policy but it's only for emergency use hence daily trips by us are not on.

[Critical_Mass 10]

That cant be right.. no where in my policy does it say for emergency use only. It just states that i can drive other cars excluding hire,taxi etc as 3rd party.

[Storm Guy 0]

Correct Critical Mass.....

 

Ok Guys - Just wanted to get this clear for myself so just called up Aviva again. Ive said it before and I'll say it again - I hate talking to operators who mislead customers!!!

The nice chap at Aviva has confirmed that if youre fully comp and have the permission of the owner you can drive and are covered third party only. So a bit p-ssed that the last guy told me otherwise, as I had to rely on someone else for the airport trip up to manchseter a few weeks back.

 

What Stonejag stated in his first paragragh, last sentence, basically summed it up....

The Aviva chap told me the 'telephone policy' when people ring up is to say NO your not covered (as then everyone would be driving others cars third party) - I explained the query and he clarified that if you are FC, you are legally covered 3rd party. So don't take no for an answer an interrogate the operator if needed!

[trickyrobo 0]

Thanks for that, much appreciated. Pete

[Critical_Mass 10]

Ah ok that makes sense then. It Avivas policy to say no so everyone doesnt drive everyone elses car third party - however that car must be covered fulyl comp anyway so not sure completely understand the logic of that

[Toohottotrot 10]

Your boss is covered for business but you are not! His policy is for business your fully comp is not! Yes it is correct that if your policy states driving other cars "not belonging to you" then you are covered third party only......but that vehicle must have insurance! So you can't own say 3 cars and only insure one, for one thing you would not be able to tax the others, as they have no certificate.

[RW1 0]

"Currently we drive this car on our own policies as we are all fully comp ourselves but what exactly our we covered for in a crash. My policy says I can drive other peoples car with their permission 3rd party but is this correct? "

 

I'm guessing but your own insurance is for domestic, pleasure & to/from work. Unless your policy covers you to drive on comapny business, your insurance will be regarded as null & void.

 

Secondly, even though your policy states you can drive anything else (within class) as 3rd party, not entirely safe for above I've stated but you also have to inform your insurance before doing so. (Simple case say.... you drive a Corsa, then borrow a M3. The cost base of your insurance premium isn't based on that.)

 

So I think you will almost certainly run aground on both these points when you phone your insurance to inform them. Do not assume without their nod and a cover note.

 

Your Ops Mgr is well off side and under company law I think can be prosecuted.

 

The way out of jail is for his policy to name you all as drivers of the vehicle. No use of your own insurance.

 

.

Edited January 27, 2012 by RW1