25.01.08 : Driving Other Cars - Are You Covered?

You may think that your car insurance gives you full cover to drive other vehicles, We doubt it!

It’s O.K. I’m covered to drive under my policy

 You will be O.K. I’ve got any driver cover

 Two very commonly used statements which are rarely true.

 ‘DRIVING OTHER CARS EXTENSION’

It is a commonly held belief by the insuring Public that if they have a motor insurance policy that it will cover them to drive someone else’s car. Not all motor policies have a ‘Driving Other Car’ extension and even if the extension is given, the extent of the protection varies.

The extension is rarely given to drivers under 25 and is often removed from the policy for certain occupations such as the Motor Trade or Entertainment industries. Underwriters may also remove the extension if the policyholder has a history of accidents or motoring offences.

If the extension is shown as applicable on the Certificate of Insurance it is still no guarantee that the cover will be operative as the Certificate has to be read in conjunction with the policy document. 

The first point to remember is that even when the extension is applicable the cover is only sufficient to meet the requirements of the Road Traffic Acts. Effectively that means that there is no cover at all for any sort of damage to, or theft of the vehicle being driven.

To make life more difficult, insurance companies do not use the same wordings or apply the same conditions. Although there is nothing in their certificate of insurance to indicate the restriction the policy of one leading insurer restricts the use of the vehicle being driven under the extension to Social Domestic and Pleasure. Some insurance companies now exclude the use, under the extension, of a vehicle belonging to a family member. Even more onerous is the restriction of the extension to vehicles that have a separate insurance policy in force.

The following new wording on certificates is being recommended by the Association of British Insurers to combat deliberate uninsured driving.

‘Excluding use to secure the release of a motor vehicle(s) other than the vehicle(s) identified above by its registration mark, which has been seized by, or on behalf of, any Government or Public Authority.’

This means that if someone has been using a vehicle that is not on the Motor Insurance Database as an insured vehicle, relying on the DOC extension of their own insurance with this type of certificate wording, they would not be able to get the car released from police custody and it would stand a chance of being crushed.

The best advice we can give now is…….

‘Do not drive a car that you have not personally insured without checking that there is an insurance policy in force for the car, and that you are allowed to drive under that policy. If you choose to rely on your own insurance you must still check that the car is currently insured and be fully aware of the extent of the cover you have under your own policy.

‘ANY AUTHORISED DRIVER’

This is another very commonly misunderstood insurance term. Very few standard private car insurance policies now give ‘Any Driver’ cover. Insurance Underwriters wish to know who is likely to drive the insured vehicle and requires full details of any facts which may affect their decision to accept the risk and influence the premium and terms applicable. Those facts are known as ‘Material Facts’.

Most private car polices are now restricted to named drivers but even those loosely termed as ‘Any Driver’ are still subject to onerous conditions. When the initial quotation for the policy is provided details have to be given of previous accidents, motoring offences, criminal offences, infirmities or disabilities and occupations. That information and any other ‘Material Fact’ has to be given in respect of the drivers named and any other person who to the policyholder’s knowledge will drive the vehicle. Even under an ‘Any Driver’ policy if a driver uses the vehicle without such ‘Material Facts’ being disclosed there is a real possibility that the cover would be invalidated.

Our advice is………..

Do not allow anyone to drive your car unless you know them well and have disclosed all ‘Material Facts’ to your insurance company. If you are uncertain what would be a ‘Material fact’ speak to your insurance broker.

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