Changing car insurance from Class 1 to Class 2 - any need?

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CaraRua

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My husband started a new job last week. In normal circumstances he would have a company car, but for now because he will be working from home due to Covid-19 he is getting a mileage allowance and using my car when he needs to. There is no point in paying BIK for a car that will be sitting outside the house going nowhere for the next few months.

This leads to my question. I am the policy holder on my insurance and he has always been a named driver, as he has always had a company car. My insurance is for social, domestic & pleasure use only - it only mentions the policy holder (me) in relation to using the car for business purposes, not the named driver.

Do I have to advise the insurance company that hubby is using the car for work purposes? I am worried that if we need to make a claim at any stage we will find the insurance null and void. I am equally concerned that my premium will go sky high if they change the class of insurance to business cover, when primarily it will be used a family car.
 
Most insurance companies will provide any cover beyond SD & P for named drivers on a policy. Reason being is their purpose on the policy is supposed to be casual driving and not the main user.

Even not withstanding your husband, you've stated the use covered by your policy is SDP and his use is not this. It's a material fact for insurer as it increases the risk for them. So you're obliged to tell them.

If he's getting a mileage allowance is the purpose of that not to cover the associated increased costs?
 
SDP, Class 1 and Class 2 are different. Class 2 covers carriage of commercial goods, tools and samples, Class 1 covers business use (driving between locations for meetings), neither covers the carriage of people other than the driver for business purposes. Class 1 & 2 cover normally have a requirement by the employer for a signed indemnity by the driver/owner.
 
mathepac said:
SDP, Class 1 and Class 2 are different. Class 2 covers carriage of commercial goods, tools and samples, Class 1 covers business use (driving between locations for meetings), neither covers the carriage of people other than the driver for business purposes. Class 1 & 2 cover normally have a requirement by the employer for a signed indemnity by the driver/owner.
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Thank you for explaining. He will not be carrying goods or people for business purposes. He will be driving from location to location for meetings. Due to the fact it is a new position and due to Covid his mileage as yet is unknown.
 
Just check also, as he's a named driver on your policy. When you took out the policy, did you say he had another car? It would probably have reduced the premium as it'd be assumed he's only occasional driver of your car. If you did, him losing company car might be a material fact to disclose to your insurer.
 
RedOnion said:
Just check also, as he's a named driver on your policy. When you took out the policy, did you say he had another car? It would probably have reduced the premium as it'd be assumed he's only occasional driver of your car. If you did, him losing company car might be a material fact to disclose to your insurer.
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Thanks. He lost his previous job in June due to Covid unfortunately, so when I took out the policy in July he had no car.
 
mathepac said:
Class 1 covers business use (driving between locations for meetings), neither covers the carriage of people other than the driver for business purposes.
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Does that mean that if I gave a colleague a lift with me to a site/meeting, my insurance won't cover them?
 
CaraRua said:
Thank you for explaining. He will not be carrying goods or people for business purposes. He will be driving from location to location for meetings. Due to the fact it is a new position and due to Covid his mileage as yet is unknown.
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He's getting a mileage allowance and using it for business. This is not covered under SDP terms, (as already mentioned). It is a material fact and you have an onus to disclose it to your insurer.
 
Bluecup said:
Does that mean that if I gave a colleague a lift with me to a site/meeting, my insurance won't cover them?
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You need to discuss that with your insurer. Many companies have what they refer to as "pool cars" where one qualified driver on company insurance in a company owned / leased vehicle cam transport other employees between locations.

When I had company cars (liable for BIK as the cars were part of my pay) I was paid a reduced mileage rate for business travel. The company insurance also covered me to carry other employees on business.
 
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