Forced to Increase Car Insurance Milage Due to Work

Hi all,

I'm having a bit of an issue with car insurance and I'm hoping that someone can give me some advice.

I recently started working part-time for Domino's, using my own car. They provide 'occasional business use' cover on a third-party basis - which isn't ideal as my car is on PCP - and I'd much prefer to have fully-comp.

I had to renew my policy recently and I've included both my personal mileage and my work mileage. I've figured out my mileage as around 7,000 personal and around 18,000 for delivery work - which is covered by Domino's - and my insurer explicitly informed me they will not cover for in the event of a claim, as it's basically 'hire and reward'. The advisor made it clear that I needed to renew at 25,000 miles as per the terms of their underwriter, UK Insurance Ltd. 

As you can imagine, going from 7,000 miles to 25,000 miles p/a has shot the premium through the roof, and it's negating the income I'm bringing in from Domino's.

My point is - my personal insurance policy is only covering 28% of my mileage in the event of a claim - yet I have to pay them 100% of the premium - despite being covered for the work mileage elsewhere.

By comparison: other drivers at my store only insure their personal mileage as the business use is covered - and they boast of how low their premiums are. The thing is, if they were to claim and their insurers compared the mileage - would they pay out - and should I, in the same way they do, reduce my mileage to my personal amount and enjoy the lower premium?

What I'm wondering is whether I can escalate this further; perhaps to the FOS as my insurance is forcing me to pay 100% of a product for which they can only cover me 28% of the time - which is ludicrous.

Any advice would be greatly appreciated. 

Thanks

Tyler
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Comments

  • FOS won't be interested in how your insurer calculates your risk. That's up to the insurer.

    If you consider it too expensive, move to another insurer.
  • What question does your insurer ask IRO mileage? 

  • unforeseen
    unforeseen Posts: 7,271
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    edited 29 November 2020 at 3:05PM
    I'm surprised that they were willing to cover you as a delivery driver TBH.
    You are lucky that they have just chosen to drop the cover to TP for the delivery portion rather than just cancel. 
  • tacpot12
    tacpot12 Posts: 7,894
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    If you are driving 18,000 miles a year doing deliver work, you should be generating a good income that can be used to purchase business insurance. I would speak to an insurance broker about getting the insurance you want. 
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • The insurance company won't be able to tell if you have an accident during the 18,000 or the 7,000 so as far as they are concerned you need to be covered by them for 25,000.
    I am also surprised that they are willing to insure someone as a delivery driver.
    I would think the other drivers aren't revealing that they are doing delivery work , which most people get away with until they are stopped by the police for some reason and it then comes to light.
    Don't waste your time trying to fight this.
    If you want to legitimately be covered for delivery be prepared for the high cost.
  • naedanger
    naedanger Posts: 3,102
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    edited 29 November 2020 at 6:25PM
    I might be completely misunderstanding, but what cover is Domino's providing? I would be concerned at the reference to 'occasional business use'. Driving 18,000 miles a year sounds a lot more than occasional to me. Also are you saying you are happy to take the risk that you have to pay for damage to your own car for 18,000 out of the 25,000 you drive?

    To be honest I am not surprised the insurer wants you to pay for 25,000 miles (if they are willing to cover the car at all). Supposing you have an accident, especially one that just involves your own car. If that is while you are working for Domino's then, if I understand correctly, they won't pay for the damage to your car. Your personal insurer will be concerned you might be tempted to claim the trip was while you were using the car for personal use. 

    I don't think a claim to FOS would be successful. I think you would be better shopping around for another policy that suits your needs better.


  • You are changing the goalposts in regard to risk, so they are changing their terms / premiums.
    If you're not happy, you'll need to move insurer.
  • rs65
    rs65 Posts: 5,682
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    They provide 'occasional business use' cover on a third-party basis - which isn't ideal as my car is on PCP - and I'd much prefer to have fully-comp.

    I think the terms of your PCP will say it has to be insured on a comprehensive basis at all times
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    Any mileage limitation on the PCP lease?  You might have an expensive bill to pay. 
  • Silvertabby
    Silvertabby Posts: 8,972
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    edited 30 November 2020 at 12:48AM
    Any mileage limitation on the PCP lease?  You might have an expensive bill to pay. 
    With bells on.  The PCP contract will specify the maximum number of miles as part of the cost agreement. Unless OP intends to buy the car outright, there will be a charge for every single mile over the agreed limit.
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