Refused insurance due to p/t job!

SnowWhiterThanWhite

My teenage son has his car insurance up for renewal, happy with price so went ahead to renew.
When speaking with them, he mentioned he had a p/t job delivering fast food, (he's a full-time student), and that his employer provides T.P. insurance for him to use his car whilst out on deliveries.
His insurance co. have refused to insure him! They say the underwriters would have insured him at no extra premium if he was just earning an hourly wage but, because he gets £1 per delivery on top, they won't insure him!

I've done some comparisons and the cheapest is a whopping 4 x his renewal premium!

Obviously, he doesn't want to quit his job but looks like he may have to.

I don't understand - he's not asking for business cover, as he is already covered through his employer?

Any ideas?

Sea_Shell

They probably assume he'll drive quicker to deliver more to earn more.
Is companies cover only for TP damage, if he's Comp then own ins still responsible for own car damage?
As for cheaper alternatives, dont know.

SeduLOUs

I thought you couldn't have two policies covering the same person on the same vehicle?

Anyway. If he gets his own personal (not business) insurance, and something goes wrong with the employer's insurance - i.e. they don't keep up repayments, forget to renew it etc, then his other insurer will have to pick up the bill if he has an accident when driving for work. It is understandable why they wouldn't want to take that risk.

Suggestion might be for son to take out his own policy with business insurance so that employer doesn't need to cover him, and ask the employer to reimburse at an appropriate milaege rate for business travel or increase hourly rate rather than paying £1 per delivery which would be seen as income and a possible incentive to drive faster and more carelessly.

SnowWhiterThanWhite

SeduLOUs wrote: »

Suggestion might be for son to take out his own policy with business insurance so that employer doesn't need to cover him, and ask the employer to reimburse at an appropriate milaege rate for business travel or increase hourly rate rather than paying £1 per delivery which would be seen as income and a possible incentive to drive faster and more carelessly.

Problem is, you have to advise your own insurance co. of any p/t work and they will not cover him. I doubt adding business ins will make any difference?

SeduLOUs

SnowWhiterThanWhite wrote: »

Problem is, you have to advise your own insurance co. of any p/t work and they will not cover him. I doubt adding business ins will make any difference?

From what you said I thought they wouldn't cover him because of the £1 per delivery.

So ask employer to get rid of that aspect by paying a milaege reimbursement rate instead, or increasing hourly rate to absorb the delivery bonuses.

You could calculate an appropriate figure to suggest to employer by working out the average miles/number of deliveries.

RS2000.

SeduLOUs wrote: »

I thought you couldn't have two policies covering the same person on the same vehicle?

That's two things you've learnt today then.

It's common practice in the takeaway business to have their business cover via the shop.

SeduLOUs

RS2000. wrote: »

That's two things you've learnt today then.

It's common practice in the takeaway business to have their business cover via the shop.

Hehe it's why I love this forum.

My fella used to deliver pizzas for 4 different places (same basis, hourly rate plus £1 per delivery and no milaege based reimbursement) and he always had to provide his own business cover. The job/cover was never an issue with insurance company, but then again we were never specifically asked how his pay was made up...

dacouch

Being paid an hourly wage is one type of class of Business Use on a policy, making a profit on the delivery can be class as a more highly rated Business Use. Many Insurers class the latter as Hire and Reward Insurance which is similar to couriers and taxis which is expensive.

In addition many Insurers will not even have the relevant wordings on their Certificates to provide cover for Hire and Reward as they intentionally bar it from being bar it.

SnowWhiterThanWhite

I've just called the fast food place he works at to see if they will amend how they pay him, of course they won't. And, when I explained the issue was told that none of the staff tell their insurance that they work p/t doing deliveries! He wasn't interested when I told him that by not telling them, it may void their insurance!

dacouch

SnowWhiterThanWhite wrote: »

I've just called the fast food place he works at to see if they will amend how they pay him, of course they won't. And, when I explained the issue was told that none of the staff tell their insurance that they work p/t doing deliveries! He wasn't interested when I told him that by not telling them, it may void their insurance!

Which is one of the other reasons Insurers are not keen on fast food delivery drivers. Because a significant amount of them are prepared to lie about their job when buying insurance, it makes the Insurers worry what other information they may lie about.

deanos

i would be more worried about having the policy cancelled, he will now have to declare it and premiums will rocket, as well as struggling to get insurance