Overlapping insurance policies...

arcon5

My vehicle has hire & reward insurance which expires in 2 weeks.

I want to take the vehicle off the road as a business tool and use for SDP&C only (with additional driver) which means taking out a private policy.

If I take out the policy now can I leave the H&R insurance to expire naturally, thus incurring a years business NCB in case needed in the future? Or would the new private insurer dislike two policies running on it?

Muscle750

Can't have two policy's on same car

George_Michael

There is nothing in law that stops you insuring a vehicle (or anything else for that matter) with as many different insurers as you like, however, you can only use your NCB on one policy at a time.

The problem with dual insurance begins if you have to make a claim.
Once an insurance company finds out that there is more than one policy in place, they will only pay out the relative proportion, so if there are 2 policies, each insurer is only liable for 50%.

This is why when making any insurance claim, one of the questions will ask if there is any other policy that in place that could pay out.

This is the relevant section from my policy smallprint (Direct Line)

10. Other insurance

If you have other insurance which covers the same loss, damage or liability,we will not pay more than our share of your claim. This does not apply to personal accident benefit (see section E).

FlameCloud

Muscle750 wrote: »

Can't have two policy's on same car

It will be fine. What you stated is a commonly held myth.

As long as the two insurers are aware should a claim occur they will likely not have a problem.

arcon5

Ok thanks guys.

To clarify, personal NCB used on new/second policy and not on business policy.

If new insurer found out, this wouldn't be grounds for cancellation or anything?

Or would this be a fact id explicitly have to declare to one another?

TrickyWicky

Muscle750 wrote: »

Can't have two policy's on same car

See thats the thing.. you can and some insurers insist on it.

Say you have Mr Smith and Mrs Jones.. they're great neighbours and share their car. One insures with Churchill and the other (who does not want to be financially linked) insures with DirectLine.

The slight glitch here however is that some insurers will insist that the car is not covered as part of another policy. They then also when insuring you with a 3rd party extension to drive other peoples cars, insist that the other persons car is fully comp or they won't insure you as a 3rd party to drive it with 3rd party cover

It's all a big con designed to get money from you.

shaun_from_Africa

Is there any specific reason why you have to take out a new policy before the H&R one expires? (I've no knowledge of how this sort of policy works)

Isn't it possible to add your additional driver to the current policy for the next two weeks but making sure that the insurance company know that the additional driver will not be acting as a H&R driver?

dacouch

shaun_from_Africa wrote: »

Is there any specific reason why you have to take out a new policy before the H&R one expires? (I've no knowledge of how this sort of policy works)

Isn't it possible to add your additional driver to the current policy for the next two weeks but making sure that the insurance company know that the additional driver will not be acting as a H&R driver?

Normally you can only add Licensed Taxi drivers to Taxi policies

arcon5

shaun_from_Africa wrote: »

Is there any specific reason why you have to take out a new policy before the H&R one expires? (I've no knowledge of how this sort of policy works)

Isn't it possible to add your additional driver to the current policy for the next two weeks but making sure that the insurance company know that the additional driver will not be acting as a H&R driver?

dacouch wrote: »

Normally you can only add Licensed Taxi drivers to Taxi policies

This. I did enquire but it wasn't allowed and the OH will be needing the car before the two weeks is up unfortunately (she is returning to work and will be needing it to get home as no public transport at the time she finishes), so can't really see it out.

CKhalvashi

dacouch wrote: »

Normally you can only add Licensed Taxi drivers to Taxi policies

In some areas yes, in some areas, no. It depends on the licensing district, and even then, some of the taxi companies won't touch it.

My main concern, and this hasn't been addressed, is if the car is licensed for the purpose of carrying passengers (Hackney Carriage/Private Hire), then will the vehicle continue to be plated.

Here is the paperwork with rules and regs for the area I'm licensed in, just to give you an idea regarding plating. If the vehicle has a plate/toplight (even if it's not on/in the car) and is used by a non-license holder, driving without insurance is a certainty (even if it's insured for SDP), as well as driving without the correct license.

Large fines, loss of driving license and prison sentences are possible, depending on the circumstances if the vehicle is stopped/called in for inspection. I've been called in by enforcement before now, and they will prosecute for anything and everything, so this is something to bear in mind.

CK

dacouch

CKhalvashi wrote: »

In some areas yes, in some areas, no. It depends on the licensing district, and even then, some of the taxi companies won't touch it.

My main concern, and this hasn't been addressed, is if the car is licensed for the purpose of carrying passengers (Hackney Carriage/Private Hire), then will the vehicle continue to be plated.

Here is the paperwork with rules and regs for the area I'm licensed in, just to give you an idea regarding plating. If the vehicle has a plate/toplight (even if it's not on/in the car) and is used by a non-license holder, driving without insurance is a certainty (even if it's insured for SDP), as well as driving without the correct license.

Large fines, loss of driving license and prison sentences are possible, depending on the circumstances if the vehicle is stopped/called in for inspection. I've been called in by enforcement before now, and they will prosecute for anything and everything, so this is something to bear in mind.

CK

My post was in relation to Taxi Insurers not adding non licensed drivers but you're correct about the licencing authorities