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Car insurance query

Discussion in 'General Cars' started by fixitflav, 25 Jul 2021.

  1. fixitflav

    fixitflav

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    On car insurance, I’m looking at standard clause below. I’m not sure I understand what it means, though I’ve never had occasion to need to.

    “The Policyholder may also drive a private motor car not belonging to the Policyholder and not hired to the Policyholder under a Hire Purchase Agreement or leased, provided it is insured under another insurance policy, for social domestic and pleasure use only and with the consent of the owner. Cover is limited to Third Party.”

    If the other car’s policy is for any driver, or has me as a named driver, this seems to be a statement of the obvious. It’s no business of my insurance company and I doubt they would pay in the event of a claim.

    On the other hand, if I’m not covered under the other car’s policy, I assume my company are saying they would settle third party claims.

    Can anybody confirm?
     
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  3. Harry Bloomfield

    Harry Bloomfield

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    Yes, that is correct. You can optionally get fully comp for driving another vehicle, a borrowed one.

    The vehicle borrowed, does have to be already covered under a separate policy of it's own, to be covered whilst you are using it - that clause is so you cannot insure one cheap to insure vehicle, then drive another you in truth do own, but have it registered under another name.

    Another dodge was having someone tax your your vehicle, using their as above insurance cover.
     
  4. fixitflav

    fixitflav

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    Thanks for that.
    Surprised they don't make it clearer by words to the effect that they will only pay if "their" driver is not covered under the other car's policy.
     
  5. Harry Bloomfield

    Harry Bloomfield

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    Insurance is never straight forward. That will always be the case, if the owner who loans the car's insurance is for any driver, that will pay for the damage. If it isn't on any driver, then your insurance covers the damage, if it is fully comp, otherwise if it is own fault, then you personally pay your friend for his loss.
     
  6. fixitflav

    fixitflav

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    OK thanks, got that!
     
  7. norseman

    norseman

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    Car insurance must be the biggest legalised scam we all have to endure. Year after year vehicle owners suffer the annual trawl through comparison web sites in search of a value for money deal though I've had better results 'phoning the broker(s). I wish I had a tenner for every time I've been offered a better deal after declining their first offering, or going back to my present insurer & being told 'how much is your best quote? 'Ok we can match that'

    A..holes :mad:
     
  8. Harry Bloomfield

    Harry Bloomfield

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    I just refuse to tell them, rather - I tell them to just offer their best quote and if it is good enough, they get business.

    I've been with the same broker for the past 8 years. My cover last year £203, their quote for renewal this year £230. I rang them last week and suggested they might like to search for a better quote for me, 2 minutes later they offered cover with AXA for £189.80 which I accepted for another year.

    As it creeps up year on year, every few years I get them to requote and back down it comes. I make them earn their broker's fee.
     
  9. bernardgreen

    bernardgreen

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    I would say comparison sites are the biggest legal scam that many people choose to endure.

    Who pays the running costs of the comparison sites ? They are not philanthropic people giving their time for free.

    I have been with the Prudential for about 50 years. ( that does make me feel old ). Maybe I pay a bit more but then the service when needed is excellent and it includes a very reliable recovery service.
     
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  11. Harry Bloomfield

    Harry Bloomfield

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    Yep. They get a cut from the insurance company, then the insurance company charges us more to cover that extra cost. The insurco is maybe tied in to not undercut their compare prices, so it's no good getting a direct quote. Always worth finding a good broker for a quote, or ringing round the smaller insurco's which are not on the comparison sites.
     
  12. Mottie

    Mottie

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    I always shop around for quotes whenever my house, car or pet insurance is due for renewal. For the last 4 years though I’ve stayed with LV as their renewal prices have been the cheapest and even better than if I was going with them directly as a new customer. I only changed away from them this year on our house insurance as I had an offer from M&S which gave the same cover for £2 more but we got £50 in M&S vouchers! I might go back to LV next year, possibly through a cashback site as a new customer. :)
     
  13. cdbe

    cdbe

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    I've noticed in the past few years that my renewal quotes seem to be pretty competitive. They didn't used to be and I almost invariably switched every year. I wonder if they've got a new algorithm that identifies me as having no loyalty - the guy last year couldn't understand why I was going elsewhere to save £7. It's quite handy at the moment as my wife had a minor bump 2 years ago and I think it's easier sticking with the same company if we can.

    I tend to use the comparison sites, identify the cheapest then go direct via a cashback site like Quidco - then I get the commission. Not as good as it used to be - one year it was £175 for the policy and £125 cashback, house insurance one year was £82 with £75 cashback.
     
  14. Harry Bloomfield

    Harry Bloomfield

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    My then partner used to deal with all these financial things, I just used to hand her money. She banked with Barclays and took the house insurance from them too. What I wasn't aware of was how much they had increased the bill by, each year. Seven years ago it came in at £450 per annum, with no claims - which was when I noticed it. I hit the roof at the amount.

    Once I had calmed down and with little idea of what these things cost, I began shopping around and arranged the same cover for 1/5 of the amount. Barclays then pestered us repeatedly, saying how good value their cover was. Well they would wouldn't they, they had suddenly lost a very profitable customer.
     
  15. Mottie

    Mottie

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    I last arranged the MIL's home insurance three years ago and halved it compared to what she was paying. Of course, she just auto-renewed. Just looked at again and got it for £225 cheaper. Best of all, I did it through Topcashback so will be getting £55 for my trouble. :)
     
  16. JohnD

    JohnD

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    "The start of 2022 will see a fundamental shift in the car and home insurance market for UK consumers: under new rules, providers will be forced to offer existing clients the same terms at renewal as they would receive as a new customer.

    The move is intended to eliminate a controversial practice known as price walking, where insurers profit from customers’ apathy by pushing prices substantially higher from one year to the next.

    Prices for new customers are expected to rise when the new rules come into force, but beyond that — as insurers large and small overhaul their strategies — no one is quite sure how the wider market will move."



    https://www.ft.com/content/ef450b09-9ac7-4dd5-949a-9a7f750bae7e
     
  17. JohnD

    JohnD

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    "The new regime, detailed by the Financial Conduct Authority in May and beginning in January, is intended to remove one of the “loyalty penalties” paid by UK consumers.

    Citizens Advice made headlines three years ago with an estimate that sticking with the same provider cost each consumer almost £900 a year across five markets — home insurance, mobile, broadband, savings and mortgages.

    Some cases were especially egregious. The consumer body cited the example of Diane, a septuagenarian from Kent who had home and contents insurance with the same provider for more than 10 years. In 2018, she received a renewal letter bumping her annual premium from £1,500 to £3,500. After going through the Yellow Pages, Diane found insurance elsewhere for £958."
     
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