Moror trade insurance

[jaycee401]

my 25 yr old son is a self employed mechanic and runs his own garage, he has a motor trade insurance policy which covers himself, partner (27) and his father (63) to drive all vehicles. the other day he was in his dads car, dad was driving and went into the back of another vehicle,(the vehicle was stopped at traffic lights) no one was hurt there was damage to ex husbands bonnet and lights and grille, but the other car only had 2 broken lights. the other vehicle was a works vehicle and the employees boss said he was quite happy for my son to repair damage and not go through insurance, now though the employee isclaiming he has damaged his back, so it is going to have to go through insurance. my son only has 1 yr no claim on this insurance, so when it comes to renewal his premiums will be sky high again, as the first year was around £2500 for the year and the second year it came down to around £1300, when he comes to renew will it go back to the £2500 or could it be even higher? will it still come down each year, would it be better if when he comes to renew he takes his dad off the insurance? thanks for any advice.

[factor-fiction]

Even if he takes his dad off the insurance it will still count as a claim made on the son's policy as I understand it

[redcrx]

was the claim on sons policy or dads? you say dads car and dad driving so im presuming it was dads own insurance. Is that right?

can the son not speak to his insurer to ask the question? or at least call another broker with details to get an idea

[jaycee401]

it's my sons policy but he has his partner and dad named on it. his dads been driving for 40+ years and never had a claim, then this happens- sod's law. i think his dads worried incase the insurance company refuse liability and don't pay the guy any compensation and then the guy will try and claim off dad.

[New Judge]

Above all else he needs to check the policy carefully.

Most Motor Trade policies that allow any vehicle to be driven usually allow them only to be driven in connection with the business. If the dad's car was being driven for "social, domestic or pleasure" purposes you may find it is not insured under the trade policy at all.

It is a requirement now that all vehciles are individually and specifically insured and they should appear as such on the Motor Insurers' Database. Some careful checking is required here.

[New Judge]

I’m not too sure about that, Eddie. I believe many traders use “trade plates” on test drives and this effectively overrides the normal index number. Perhaps somebody in that line of business could help.

I must say I’m making a number of (perhaps incorrect) assumptions about Jaycee’s description of events . I’m assuming that dad’s car is just that – dad’s car which is being used normally but is only (hopefully) insured via the trade policy. If it is being driven as “any vehicle” under that policy it may well not be covered if it is not being used in connection with the business. If she is correct it means that the son, partner and father need not individually insure any car that any of them owns and I have my doubts (though I’m certainly not sure) that this is in order.

As I said, some careful checking is needed.

[chas2008]

welcome to to UK compensation culture , bet he didnt have a back problem until the 'compensation' word was mentioned..

[jewellerjim]

if his premiums go up why does his dad not offer to pay the increase as a goodwill gesture to your son. After all it was his dad's fault and not his.

[jaycee401]

thanks for the replies, dads car was being used in connection with the business and dad will pay any extra on the premiums when they go up. my son has now received 2 letters from minster law claiming both guys in the car suffered injury and are being sent for a medical, your right we really are compo crazy, dad was driving at about 5mph coming up to the traffic lights, his car is a range rover and took most of the damage with about £2k worth of work need doing, the car in question has 2 broken lights and number plate! I don't suppose they will be refused compo :(

[jaycee401]

Just hope it does not affect his business, he has only had it for 1 year and is doing really well :(

[jaycee401]

the policy states can also be used for social domestic and pleasure, it just names the 3 drivers but no specific vehicle reg. just as a matter of interest if they did find a clause not to pay out i.e. if he had been using it as social and this was not specified on the insurance what would happen?