Car Insurance for Courtesy Car

Lucy_Lastic

On booking my car in to the local Honda dealer for a service I was given the details of the courtesy car provided so that I could inform my insurer.

I informed the AA and they charged me £25 to cover the courtesy car for the one day that I would be driving it.

I collected the courtesy car today and had to sign a form stating that I have comprehensive cover arranged. I also had to sign to say that I would replace the petrol used. Is this now normal practice for dealers or are Honda just cheapskates?

I have had courtesy cars before and never had to do this. What happens if you go to a dealer for a test drive - do you have to take out additional insurance these days? This did not used to be the case.

lisyloo

I've never had to get seperate insurance, but it's always been common to put petrol in.

It would make sense to look into the costs up front.
£25 is quite a lot and most people would chose to get a bus or a lift unless your journey makes that absolutely impossible.

Lucy_Lastic

I just assumed that dealers had their cars insured fully comp to cover this sort of thing (and test drives). Unfortunately I live/work out in the sticks so no chance of a lift or public transport. I won't be going to the dealer again, I will stick to a local garage. I only chose the Honda dealer as there were outstanding recalls to be rectified.

You live and learn.................

mluton

Past few times I have had to arrange my own insurance. And tomorrow is one of those days.

ROY47

Common practice these days , you have to insure courtesy cars

until your insurane company says we don't cover courtesy cars

clairet707

I use the ford dealer and they charge £10 for the insurance (I dont have to insure it myself)

But yes always have to give back with same amount of fuel received with

Lucy_Lastic

So what about insurance for test drives?

Sally_A

I'll do the easy one first - test drives - garages will either have accompanied demonstration or unaccompanied demonstration cover for test drives. Accompanied tends to come as standard (with decent insurers), Unaccompanied has certain criteria attached before they can let the vehicle go out, eg age, proof of ID.

Courtesy Cars - any garage that charges separately for courtesy car cover is effectively getting into the realms of Self Drive Hire which is a whole new complicated ball game. They are better off hiding this in their labour charges.

Courtesy car givers are allowed to make you responsible for the excess (even charging an excess waiver, as garage excesses are likley to be higher than a private individuals excess), speeding fines, keeping the vehicle safe eg punctures, oil, parking tickets, speeding tickets etc if needed. This is why it is important for the garage and the customer to look and agree to any pre exisiting damage to the vehicle, and also note the times the vehicle was lent out and returned.

(It's a bit more complex than that, but those are the basics that will apply to 99% of all cases).

mcjordi

on one 48 hour test drive i had on the fiat bravo ( the new one) they said i had to arrange insurance.. rang my insurer and they said i have no insurable insterest in the car so they wouldnt cover me.. they said its the garages responsability to cover their stock ie test drives/courtousy cars..

Sally_A

However garages can make you contractually liable so you do have an insurable interest.

Most garages (and I would have thought a Fiat main dealer would have) have unaccompanied demo/courtesy car cover, as without their interest being noted on your insurance, once you wrap it round a lamp-post, the claims cheque would be payable to you, as your insurers would indemnify you, the policyholder.

'Tis a minefield out there!

Lucy_Lastic

Sally_A wrote: »

I'll do the easy one first - test drives - garages will either have accompanied demonstration or unaccompanied demonstration cover for test drives. Accompanied tends to come as standard (with decent insurers), Unaccompanied has certain criteria attached before they can let the vehicle go out, eg age, proof of ID.

Courtesy Cars - any garage that charges separately for courtesy car cover is effectively getting into the realms of Self Drive Hire which is a whole new complicated ball game. They are better off hiding this in their labour charges.

Courtesy car givers are allowed to make you responsible for the excess (even charging an excess waiver, as garage excesses are likley to be higher than a private individuals excess), speeding fines, keeping the vehicle safe eg punctures, oil, parking tickets, speeding tickets etc if needed. This is why it is important for the garage and the customer to look and agree to any pre exisiting damage to the vehicle, and also note the times the vehicle was lent out and returned.

(It's a bit more complex than that, but those are the basics that will apply to 99% of all cases).

See OP - The garage were not charging for the insurance cover, so therefore could not hide it in their labour charges.

What is the difference between unaccompanied demonstration cover and unaccompanied courtesy car use?