Car Insurance Case History

Mr N had a comprehensive policy covering 'any driver' so he wasn't particularly concerned when his brother-in-law borrowed his car and had an accident. But he soon got worried when his insurer refused to pay the £450 claim for damage to his car.

Mr N was appalled to discover that his brother-in-law wasn't covered under the `any driver' policy because he had been convicted of a drink-driving offence two years previously, which meant that he was driving uninsured when the accident happened. So Mr N had to pay for the repairs. In addition, three pedestrians were injured in the accident and Mr N was faced with the possibility of having to pay for their injury claims - around £10,000.

The insurance company said that Mr N should have checked with them that it was all right to lend the car to his brother-in-law beforehand. They would have told him that the company did not insure drivers with drink-driving convictions.

Moral: consult your insurance company if drivers are young, inexperienced, or have a motoring offence, before handing over the keys.

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What influences cost?

The main factors are the area in which you live - for example, you'll pay more if you live and drive in a crowded urban area than if you live out in the country - and the type of car that you drive - some cars are more likely to be involved in accidents or more expensive to repair. Age is also important - younger drivers are higher risks and are charged more. Some companies give favourable terms to 'mature' (50+) drivers. There are many other factors which insurers consider such as whether you use your car for business, and your occupation.

Points to noteCar Insurance Continued

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