Courtesy Car Stolen

The_Saving_Man

A friend of mine recently took his car into his local garage for some repairs. Whilst his car was there, the garage gave him a car to drive around in. The car was then stolen on the weekend from outside his local community centre where he works once a week. :eek:

The garage are claiming that it's his responsibility and he needs to make a claim on his insurance for theft. He, doesn't see why he should lose his no claims bonus on a car that wasn't his. He wasn't asked to sign anything, and he wasn't asked to take out insurance, so he just assumed it was covered by the garage's insurance.

Who is actually right in this case, my friend or the garage?

Astaroth

Where the repairs part of an insurance claim?

If they were then the vehicle is normally covered by this insurance. If it is just routine mechanical work that is being done and he has been given the car outside of an insurance claim then unless he added the vehicle to his insurance as a temporary additional vehicle then he would have no cover on his own insurance for its theft.

The_Saving_Man

Astaroth wrote:

Where the repairs part of an insurance claim?

If they were then the vehicle is normally covered by this insurance. If it is just routine mechanical work that is being done and he has been given the car outside of an insurance claim then unless he added the vehicle to his insurance as a temporary additional vehicle then he would have no cover on his own insurance for its theft.

It's not insurance work. So would it therefore be the garage's responsibility or is it a case that he's been driving around uninsured?

Astaroth

Depending on which insurance company he is with the likelihood is that he has Driving Other Cars cover on his own motor policy which gives him Third Party Only cover for driving any vehicle not owned by him with the owners consent. Unfortunately there are a few insurers that no longer give DOC cover on their policies. This would make him legal but not cover the theft

Fleet and motor trade policies do vary a fair amount so there is no way of saying if they cover courtesy cars whilst in the control of a customer

Bossyboots

I am still amazed by the number of people who simply drive other cars without checking the insurance position. It was bad of the garage not to advise him of this point but he should have checked. When we take a courtesy car we can either transfer the car temporarily to our own insurance (at no cost if it is the same insurance group) or pay a small fee for separate cover through the garage. These are the only two ways we are covered for fault damage to that car or theft.



Therefore, based on my own experience of taking courtesy cars, the driver in question is not covered for the theft (and wasn't covered for fault damage) at all.

However, I would push the garage to try to take a make claim on its own insurance. The usual line is that the courtesy car itself is only covered by the garage insurance while in the possession of the garage or an authorised employee so this may not work. If it doesn't, as far as I can see, the driver is going to be expected to pay for the car.

researcher

Whenever we've had courtesy cars (regularly over the years and never for an insurance claim), the garage always ask us in advance if we wanted to arrange our own insurance or use theirs (usually with a large excess). If we did not contact our insurer in advance it would not be covered by our policy but the garages own policy, which may or may not be that extensive depending on the garage.

It is up to the individual driver to enquire what exactly the insurance covers, but if the garage did not provide any documentation regarding excesses on their policy, or your responsibility in event of a claim, then you are not responsible for their omission. They cannot force you into a retrospective decision.

I guess they're panicking as they didn't follow correct procedures. Tell them you are not responsible and will not contact your insurers. However, I'm sure you will have to make a statement, and if possible provide independent witnesses.

silvercar

The garage will definitely have its own insurance; it will have a wide definition of cover that includes any employee driving any car with owners permission and any car it owns being driven by anyone it gives permission to.

Its premiums go up if it makes claims so won't want to make a claim.

Ivrytwr3

Your friend SHOULD have filled in insurance forms stating either his insurance would cover any eventuality or the garages would (usually with a hefty excess too!)

However, as your friend hasn't signed anything he has no liability whatsoever ie you loan your mates lawnmower and it gets nicked the only liabilty you have to replace that is your own conscience.

I'd get my own car back first and then tell the garage if they want to persue the matter then you will pass their complaint onto your solicitor and see them in court (then i would never visit the same garage again!!)

hjb123

Last time I used a courtesy car the insurance was arranged through the garage and I just had to sign the car in and out when I used it. Though I guess it all depends on the garage and how big it is etc. Its maybe worth speaking to the Financial Ombudsman to see if they know the answer - though Im not sure they will - or even ring the insurance company up and see what they are covered for.