Insurance: “garage” defined over the phone but nowhere in writing

SouthLondonUser

Time to renew my motorcycle insurance. I am comparing quotes. My bike is in a locked garage, shared by the other 12 or so residents of my building. Last year I didn’t bother declaring the garage as there was no difference in price. This time the difference is substantial. I narrowed it down to 3 providers. Went through all the wording and small print etc, and I couldn’t find any definition of garage. Called the insurers (actually, they’re brokers) to ask; all said shared garages do not meet their definition of “garage”, but all admitted that their definition of garage is not specified anywhere in writing.

Should the bike be stolen, could the insurer really claim that the policy was void because I didn’t meet a definition that they have not defined anywhere in writing? Does any one know if there is any case law / actual complaints history / rulings etc on this? We’ll have our opinions, but an opinion not backed by specific case history is not worth much.

I appreciate there are probably more car drivers than motorcyclists on the forum, but I imagine the question applies to cars just the same.

Thanks!

AnotherJoe

Does it say "garage" or "private garage"?

I think if i said i parked my car overnight in a garage and it turned out to be a multi storey car park they might cause an issue.

Then again there must be plenty of people in flats where there is a shared garage and even if there is a door, its accessible by all the residents so i dont know what the position would be there.

OK I've just looked at my insurer, Direct Line. My emphasis on the relevant wording.

In section B Damage to your car; and section C Fire and theft , the term car also includes its accessories and spare parts, whether they are on or in the car, or in your locked private garage.


So, it seems by implication that the term garage means yours, not shared, locked.

MEM62

I can see where the underwriters are coming from. A garage offers security because the bike is out of sight and secure. If the place of storage is accessible by a number of other people it would not be considered secure.

If it were your own garage then only you would have access. The garage in your circumstances is a public space.

A better description for your circumstances would be 'secure or communal compound' but there isn't really an insurance classification for this so you are basically falling through the classification cracks.

SouthLondonUser

They do not say “private garage”.

I suppose I may have been unclear. The question was not why do insurers prefer a private garage, accessible by me only – that much is quite self-evident. The question was: should the bike be stolen, can they really claim the policy was invalid because I didn’t meet a definition that they have not defined anywhere in writing? If they want the garage to be accessible by me only, surely they should put this in writing, especially if they have somehow bothered to communicate this to the various call centre minions?

Again, what I’m interested in is not generic opinions, but if anyone knows of any case history / case law etc on this. Common sense would suggest that the terms of a written contract must be made explicit in writing, but common sense and the law don’t always go hand in hand!

PS Some definitions below:
Devitt: “a garage refers to a lockable brick built / concrete sectional garage, which is at the home address. This does not include wooden structures e.g. sheds or any garage which is not at the home address. Any off-road parking other than "on a private driveway" or "in a locked garage" should be entered as "on the road."

Ramasis: R9 Ungaraged vehicle theft excess
While Your Motorcycle is parked at or in the proximity of:
* Your private dwelling house, or
* Any other address where Your Motorcycle is usually kept if this alternative address has
been specifically agreed by UsWe will not pay DOUBLE the amount shown on the schedule for the first part of any claim forloss or damage caused by Theft or attempted theft unless Your Motorcycle is in a lockedprivate garage or outbuilding.

AdrianC

SouthLondonUser wrote: »

The question was: should the bike be stolen, can they really claim the policy was invalid because I didn!!!8217;t meet a definition that they have not defined anywhere in writing?

That depends entirely on the wording in your policy Ts & Cs.

PS Some definitions below:
Devitt: !!!8220;a garage refers to a lockable brick built / concrete sectional garage, which is at the home address. This does not include wooden structures e.g. sheds or any garage which is not at the home address. Any off-road parking other than "on a private driveway" or "in a locked garage" should be entered as "on the road."

Many policies are quite happy with wooden garages.

Ramasis: R9 Ungaraged vehicle theft excess
While Your Motorcycle is parked at or in the proximity of:
* Your private dwelling house, or
* Any other address where Your Motorcycle is usually kept if this alternative address has
been specifically agreed by UsWe will not pay DOUBLE the amount shown on the schedule for the first part of any claim forloss or damage caused by Theft or attempted theft unless Your Motorcycle is in a lockedprivate garage or outbuilding.

So that would still pay out, but they will double your excess if it's parked outside your house instead of in the (locked private) garage.

So who is your policy actually with, and what do their Ts & Cs say? Remember, you have 14 days after receipt of the Ts & Cs to cancel with no penalty except paying pro-rata premium.

SouthLondonUser

AdrianC wrote: »

That depends entirely on the wording in your policy Ts & Cs.

What if the wording doesn't say anything about the garage being private, being shared or not, being accessible by others or not? That's the question.

Again, common sense would suggest that, if the insurer hasn't bothered excluding shared garages, then a shared garage should qualify, but what I'm really asking is if anyone knows of any actual case / dispute on this.

AdrianC wrote: »

So who is your policy actually with, and what do their Ts & Cs say? Remember, you have 14 days after receipt of the Ts & Cs to cancel with no penalty except paying pro-rata premium.

Like I said, my current policy expires in a few weeks. With my current policy the bike is declared as 'on the road' because at the time there was no price difference between road vs garage. There now is. To be clear, I have not bought a new policy yet.

George_Michael

AdrianC wrote: »

Remember, you have 14 days after receipt of the Ts & Cs to cancel with no penalty except paying pro-rata premium.

You can also be charged an administration fee by the insurance company to cover the costs incurred in setting up and cancelling the policy.

paddyandstumpy

George_Michael wrote: »

You can also be charged an administration fee by the insurance company to cover the costs incurred in setting up and cancelling the policy.

+1. It's a common misconception cancellation fees can't be charged in cooling off, they can. Outside of cooling off the insurer can charge additional (or higher) fees for cancellation.

SouthLondonUser wrote: »

Time to renew my motorcycle insurance. I am comparing quotes. My bike is in a locked garage, shared by the other 12 or so residents of my building. Last year I didn’t bother declaring the garage as there was no difference in price. This time the difference is substantial. I narrowed it down to 3 providers. Went through all the wording and small print etc, and I couldn’t find any definition of garage. Called the insurers (actually, they’re brokers) to ask; all said shared garages do not meet their definition of “garage”, but all admitted that their definition of garage is not specified anywhere in writing.

Should the bike be stolen, could the insurer really claim that the policy was void because I didn’t meet a definition that they have not defined anywhere in writing? Does any one know if there is any case law / actual complaints history / rulings etc on this? We’ll have our opinions, but an opinion not backed by specific case history is not worth much.

I appreciate there are probably more car drivers than motorcyclists on the forum, but I imagine the question applies to cars just the same.

Thanks!

Your bike is kept in a secure carpark, not a garage. Where a definition isn't defined, common law definition will apply.

To answer your question, if the insurer would not have insured you had they known the correct facts, they can void your policy and refuse the claim. A similar example of this is the recent Ageas Household claim which is receiving a fair amount of publicity as the insurer voided the policy on the basis the property was mis-represented as a 5 bed when it's a 7 bed, and they wouldn't have offered cover if they had the correct facts.

If the insurer would have insured you at a different price they will pay your claim in proportion with the premium you paid. For example, if you paid £750 and the insurer would have accepted the risk at £1,000; they'll pay 75% of your claim.

Herzlos

That's what I was thinking. How does this shared garage differ from a private garage or a secure car park? I'd call it the one it most closely matches.

I'm assuming this is essentially a private car park, under a block of flats, with a single access which presumably locks. It's called a garage, but it's not a long wood/brick building with space for 12 cars and a locking door.

Legally, when there's an ambiguity in the contract, the meaning taken is the one that benefits the weaker party (you). So if you can convince a judge/adjudicator that it really is a garage, then the insurance company wouldn't be able to refuse to pay out. You'd potentially be looking at a drawn out legal battle (or at least Ombudsman interaction) before seeing a payout though.

SouthLondonUser

paddyandstumpy wrote: »

Your bike is kept in a secure carpark, not a garage. Where a definition isn't defined, common law definition will apply.

Is there a common law definition of garage? Is there any case law in which a judge explicitly ruled that a shared garage is not a garage, even if the written contract in question did not define "garage"?

If I just look up the definitions of "garage" in a few dictionaries, nothing suggests that a shared garage is not a garage.

paddyandstumpy wrote: »

To answer your question, if the insurer would not have insured you had they known the correct facts, they can void your policy and refuse the claim.

No, this answers the question of what the insurer will probably want to do. Again, my question was different - I asked if anyone knows of any actual case in which an insurer and the insured argued over the definition of garage (when the term was not defined in the contract), and if there is any ruling by the courts / Ombudsman / whatever on this.

Herzlos wrote: »

Legally, when there's an ambiguity in the contract, the meaning taken is the one that benefits the weaker party (you). So if you can convince a judge/adjudicator that it really is a garage, then the insurance company wouldn't be able to refuse to pay out. You'd potentially be looking at a drawn out legal battle (or at least Ombudsman interaction) before seeing a payout though.

That was my guess. I suppose you don't know of any actual specific cases on this, do you?

verityboo

SouthLondonUser wrote: »

Is there a common law definition of garage? Is there any case law in which a judge explicitly ruled that a shared garage is not a garage, even if the written contract in question did not define "garage"?

If I just look up the definitions of "garage" in a few dictionaries, nothing suggests that a shared garage is not a garage.

No, this answers the question of what the insurer will probably want to do. Again, my question was different - I asked if anyone knows of any actual case in which an insurer and the insured argued over the definition of garage (when the term was not defined in the contract), and if there is any ruling by the courts / Ombudsman / whatever on this.


That was my guess. I suppose you don't know of any actual specific cases on this, do you?

Turning the argument round, can you provide any evidence of anyone ever describing communal parking as a garage. (If you lease a flat what is the parking described as?)

There is unlikely to be any case law as I doubt (trying now to be as tactful as possible) people get confused about garages on a regular basis