Rental vehicle involved in collision

martyn0284
martyn0284 Posts: 13
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edited 5 January at 11:20AM in Insurance & life assurance
Hi guys,

Hopefully someone will be able to help me.

I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

My question is, if the claim did go through, who would be liable to pay the excess, him or me?

Thanks in advance

Comments

  • TELLIT01
    TELLIT01 Posts: 16,261
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    Unless there is something in the contract of employment to say that the person driving a vehicle is liable to pay the excess, the cost will fall on the company.
  • DullGreyGuy
    DullGreyGuy Posts: 9,201
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    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
  • martyn0284
    martyn0284 Posts: 13
    First Anniversary First Post
    Forumite
    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
    I personally rent it through the rental company. 
    The fleet policy is through the rental company.
    He's classed as an employee I guess but he's self employed and there is no formal contract
  • MattMattMattUK
    MattMattMattUK Posts: 8,292
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    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
    I personally rent it through the rental company. 
    The fleet policy is through the rental company.
    He's classed as an employee I guess but he's self employed and there is no formal contract
    How is he paid, via PAYE? Does he invoice and you pay him by bank transfer? Something else? 
  • martyn0284
    martyn0284 Posts: 13
    First Anniversary First Post
    Forumite
    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
    I personally rent it through the rental company. 
    The fleet policy is through the rental company.
    He's classed as an employee I guess but he's self employed and there is no formal contract
    How is he paid, via PAYE? Does he invoice and you pay him by bank transfer? Something else? 
    He's on a day rate and I just pay him via bank transfer however much he's owed
  • MattMattMattUK
    MattMattMattUK Posts: 8,292
    First Anniversary First Post Name Dropper
    Forumite
    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
    I personally rent it through the rental company. 
    The fleet policy is through the rental company.
    He's classed as an employee I guess but he's self employed and there is no formal contract
    How is he paid, via PAYE? Does he invoice and you pay him by bank transfer? Something else? 
    He's on a day rate and I just pay him via bank transfer however much he's owed
    Almost certain you cannot recover the excess from him then as there is no contract, but I urge you to speak to your accountant about your "employment" of people. They either need to be employees, paid via PAYE, or they need to submit invoices and you pay them, anything else would mean you are paying employees whilst avoiding your obligations with regard to employment taxes, processing PAYE, er's NI etc., the penalties for which could far exceed the excess for an insurance claim. 
  • DullGreyGuy
    DullGreyGuy Posts: 9,201
    First Anniversary First Post Name Dropper
    Forumite
    I rent a vehicle on a long term basis from a vehicle rental company. Whilst it's in my name on the agreement, it isn't me that drives it. The lad who drives it was accused of causing damage to a third party vehicle. He strongly denies it, but he admits he was driving it in the statement he had to fill out. He was on the companies' fleet insurance so everything was kosher.

    My question is, if the claim did go through, who would be liable to pay the excess, him or me?
    So you rent it or your company rents it?
    Is the fleet policy the hire car company's or your company's?
    Is the "lad" an employee? What does his contract state about deductions
    I personally rent it through the rental company. 
    The fleet policy is through the rental company.
    He's classed as an employee I guess but he's self employed and there is no formal contract
    So you will be the one liable for paying the excess and in the absence of a contract and assuming he is an employee or worker then your ability to recover without a contract is going to be next to none. 

    You should however certainly confirm his legal status as he cannot be both an employee and self employed... you don't want to be in Uber/Adisson Lee etc position where they end up having to back pay monies when their presumed self employed contractors challenge and get identified as workers/employees. 
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