Currently in the UK there are only two forms of insurance that are required by law, MOTOR INSURANCE and EMPLOYERS LIABILITY cover. The requirements are very specific, but actually very easy to understand, so there is no excuse, if you fall foul of the law. So let’s look at motor insurance today.
Motor insurance under the Road Traffic Act, must as a minimum, cover damage and injury to other people and property. This includes passengers in your vehicle. This used to be called TPO (Third Party Only) cover.
As the costliest claims are personal injuries (covered under TPO) and as the amounts awarded in the courts have increased massively in the last 30 years, there is now very little difference in cost between TPO and Fully Comprehensive. Most insurers don’t offer TPO anymore.
We all know we have to have it and of course with the advent of ANPR Cameras linked to the MID (motor insurers database) the police can tell immediately if you are not insured. So, make sure you have a live policy covering the vehicle and yourself, specifically.
Most fully comp policies give cover to drive another vehicle TPO, which is ok for the law, but this cover generally only extends to the named policyholder and not the other named drivers. So, for instance if your son is named on your policy, he can’t drive his car under your insurance.
As I mentioned earlier, the MID will now tell the police if there is NOT a specific policy on any vehicle being driven, so excuses just won’t wash.
Motor Trade and Fleet policies can sometimes give “Any Motor Vehicle” and “Any Authorised Driver” cover, but that doesn’t extend to personal cars of staff or families and again, vehicles in those businesses still have to be loaded onto the MID.
If you want to be sure what cover you have, what can be driven and who can drive it, look at your certificate. Under description of vehicles, it may have a registration number or be open and under the drivers section it will tell you who can drive and under class of use, what purpose it can be driven for.
If you have a personal car on Class 1 use and are driving it for your business, that will only apply to the named policyholder. If you want anyone else to drive it for the business, then you will need Class 2 or Class 3 business use, which increases the premium by up to 50%.
Want to know more about what you can and cant do, feel free to call us, #becauseaccidentshappen to nice people all the time.