Business Use Car Insurance

[JtB]

I wouldn't like to be arguing your case before the magistrates when facing a no insurance charge

That’s my insurance company’s definition (not mine) of what “Commuting to a single place of work” means when I informed then that I occasionally travel to a customer’s office.

 

[Drago]

And it's an absolute offence - if you're caught without insurance, regardless of the circumstances, there is no defence in law.

 

[spen666]

Why do you believe there is no insurance.

I never said I believe there is or is not no insurance

 

[Profpointy]

Just a thought on this. If you are stopped by the police and get your insurance checked - how are they to know you're on the way to a client (not insured) or on your way to the shops (insured)? The vehicle itself will come up ok on the database after all.

 

[Milkfloat]

If you essentially lie and say you're on private business then you'll have to claim on your own insurance, with all the excesses, no claims discounts associated. Why should you have these costs if you are on company business? Happened to a colleague a few years ago, he wasn't happy.

If it is your insurance and you have business cover then you are bearing those costs anyway. If the company you work for also covers your private vehicle for your business use, then you won't be making a claim on your insurance.

 

[Profpointy]

It would be unusual to say the least for the company to pay for a seperate policy for business use of your own car. The usual score is that you get a "car availability allowance" lump sump and / or a rate per mile to cover any extra costs - whether fixed costs like insurance or variable costs like petrol and wear and tear.

 

[Milkfloat]

It would be unusual to say the least for the company to pay for a seperate policy for business use of your own car. The usual score is that you get a "car availability allowance" lump sump and / or a rate per mile to cover any extra costs - whether fixed costs like insurance or variable costs like petrol and wear and tear.

I did not think it was that unusual - mine does and that is on top of 45p/mile.

 

[Profpointy]

I did not think it was that unusual - mine does and that is on top of 45p/mile.

Not being funny, but are you really sure about that ? ie that you've got your own motor insurance for your own car but the company has a completely seperate cover for your car whilst you are on company business ?

 

[vickster]

[QUOTE 5103316, member: 45"]If you have an accident while using your car for business without having business cover, does that mean that your policy is void and so you were uninsured at the time of the incident? Are you then uninsured from a legal perspective?

MIB 3rd party cover -is this separate from your insurance policy?[/QUOTE]
That would be my understanding and the gist of the discussions above

An insurance policy gives you 3rd party, that's the legal requirement. The MIB can get involved if the driver is uninsured or it's a hit and run and thus there's no driver to claim against

 

[Deleted member 26715]

Who would have the burden of proof, you (driver) to prove that you were not on a business journey or the other parties insurance to prove you were. In my specific instance, I have to drive past the train station that I use to get to my normal place of work. So unless I was actually coming in our out of the station car park how would anyone know? Although if I was on the way to the airport to take a flight to the US which I also do once a year that maybe different, but as I work in the private sector, they do not pay me mileage nor am I on company time, although they do pay for the flights.

Let's ignore the Police because they won't care as long as there is 'some' insurance on the vehicle.

 

[Profpointy]

I suspect the reality of it is you'll get away with it pulled by the police as "computer says ok" and you'll also get away with it if you drive into another car as the insurance will just pay up. The problem might arise if you cripple someone and the settlement is half a million. Again the insurance will habe to pay up but may try and claim it back from you and have your house

 

[marinyork]

[QUOTE 5103357, member: 45"]But if you were driving for business and didn't have business cover there wouldn't be 'any' insurance on the vehicle. That's what appears to be the case from this discussion.[/QUOTE]

Yep. Happens all the time.

My old employer liked to think of itself as a 'reasonable employer' and was supposed to do risk assessments, check insurance, just like regulator said above. A manager was transporting stuff between sites for business purposes, had an accident (I'm led to believe) and rumbled by the police. After that there was an internal communication to check that these things were being carried out and everyone had business insurance. They found that a large number of people didn't have business insurance at all.

 

[spen666]

I did not think it was that unusual - mine does and that is on top of 45p/mile.

You technically will be liable to tax on the cost of the insurance policy or on part of 45p per mile allowance as you are effectively being double compensated.

the 45p per mile allowance is including an allowance for extra insurance costs

That said, you would have had to have done something bad to upset the taxman for him to pursue you for the "benefit" you get in the circumstances you describe

 

[marinyork]

[QUOTE 5103368, member: 45"]My last place wouldn't pay mileage claims without a copy of current insurance certificate and MOT. And a signed off "authorisation to drive".[/QUOTE]

I think that happened at some sites. Other sites either just paid out anyway or as is often, didn't pay out anything.

 

[Drago]

[QUOTE 5103368, member: 45"]My last place wouldn't pay mileage claims without a copy of current insurance certificate and MOT. And a signed off "authorisation to drive".[/QUOTE]. T'was like that in the dibble.