Loaning a Car to a friend.

Orionaut · 2 May 2019 at 06:44

What is the insurance position regarding the long term loaning of a car to a friend.

I wish to retain ownership, but she would have to arrange her own insurance.

I would still wish to retain the right to use the car myself if necessary on my own insurance.

(I can not add her to my insurance since she is neither a "Partner" nor an "Employee" (Traders insurance) otherwise i would have done so)

grudas · 2 May 2019 at 06:57

you can insure what ever you want, you don't need to own the car.

she insures it on her own policy declaring you as owner(aka she doesnt own the car)
you insure it as is, you own the car, you drive it.

it is perfectly legal to have two policies on one car.

Scania · 2 May 2019 at 07:08

grudas said:
you can insure what ever you want, you don't need to own the car.

she insures it on her own policy declaring you as owner(aka she doesnt own the car)
you insure it as is, you own the car, you drive it.

it is perfectly legal to have two policies on one car.

You can insure the vehicle on two seperate policies, however, if dual insurance exists (more than one policy) each insurer has to pay a contribution towards any claim. Therefore, in the event of a claim by either policyholder, both policies would then lose their No Claims Discount.

[TW]Fox · 2 May 2019 at 07:09

Scania said:
You can insure the vehicle on two seperate policies, however, if dual insurance exists (more than one policy) each insurer has to pay a contribution towards any claim. Therefore, in the event of a claim by either policyholder, both policies would then lose their No Claims Discount.

What?

Scania · 2 May 2019 at 07:12

[TW]Fox said:
What?

When two insurers cover the same car, they share responsibility. Contribution clauses mean that both insurers would be in contact with each other to see how much they each need to put towards your pay-out, and there’s no guarantee that they will agree.

You also need to make sure both insurers are aware the car is covered by another policy.

Found this out when I was going to put my e38 on my partners policy and queried it first with my insurer, that’s what.

robj20 · 2 May 2019 at 07:15

Why not add her to your policy as a named driver, she pays you what ever the increase is?

Scania · 2 May 2019 at 07:18

robj20 said:
Why not add her to your policy as a named driver, she pays you what ever the increase is?

Orionaut said:
(I can not add her to my insurance since she is neither a "Partner" nor an "Employee" (Traders insurance) otherwise i would have done so)

robj20 · 2 May 2019 at 07:20

Ha ha, totally missed that when i first read it.

BUDFORCE · 2 May 2019 at 07:43

I don't think some insurance companies like that dual insurance on one car either.

The rules may have changed but I'm sure I came across this at one stage and they told me I couldn't do it.

How often realistically will you need to use the car? - you say you want to retain use, maybe if the occasion arises you could get temporarily covered, my insurance company at least will cover me on another vehicle for 30 days I believe.

vanpeebles · 2 May 2019 at 07:53

Sounds more trouble than it's worth.

AndyCr15 · 2 May 2019 at 08:05

Orionaut said:
(I can not add her to my insurance since she is neither a "Partner" nor an "Employee" (Traders insurance) otherwise i would have done so)

Surely these aren't the only people that can be added? I added my brother, for example. He's not my partner or employee?

https://www.confused.com/car-insurance/guides/add-driver-to-car-insurance-policy

Does a family member regularly drive your car? Maybe a friend wants to borrow it for a weekend? In some cases, it can be expensive, but not always.

Gaygle · 2 May 2019 at 08:10

Scania said:
You can insure the vehicle on two seperate policies, however, if dual insurance exists (more than one policy) each insurer has to pay a contribution towards any claim. Therefore, in the event of a claim by either policyholder, both policies would then lose their No Claims Discount.

Most insurances I've seen state that there must be no other insurance that covers the vehicle at the time.

Beerbaron · 2 May 2019 at 08:26

I have my mate on my car insurance and I'm on his.

Raymond Lin · 2 May 2019 at 08:31

Scania said:
You can insure the vehicle on two seperate policies, however, if dual insurance exists (more than one policy) each insurer has to pay a contribution towards any claim. Therefore, in the event of a claim by either policyholder, both policies would then lose their No Claims Discount.

Why would the insurance for the driver that was not driving having to pay 50% of the claim?

In this country you buy insurance for the person more than the car, as long as you don't claim twice (double dip) on the same accident, and claim out of the person who is driving, surely that is what is important.

Scania · 2 May 2019 at 08:37

Gaygle said:
Most insurances I've seen state that there must be no other insurance that covers the vehicle at the time.

This is true, most don’t allow it, this doesn’t mean it’s not possible nor illegal.

Raymond Lin said:
Why would the insurance for the driver that was not driving having to pay 50% of the claim?

In this country you buy insurance for the person more than the car, as long as you don't claim twice (double dip) on the same accident, and claim out of the person who is driving, surely that is what is important.

No idea, just stating what I was told by my insurance (Adrian Flux)

Mercenary Keyboard Warrior · 2 May 2019 at 08:40

The dual insurance in force happens in other areas and not limited to motor.
EG travel insurance will often go back to home insurers for a split when items are removed from the home, since when removed most house insurance covers the same items.

Going back to the motor one it depends on the situation. Say the driver crashes into another driver, admits fault and no one queries its likely the insurance they hold will pay out completely.
Say the car with dual insurance is vandalised, then both parties will need to agree and share the claim.

Mercenary Keyboard Warrior · 2 May 2019 at 08:42

https://www.admiral.com/magazine/guides/car-insurance/why-you-shouldnt-double-insurance-cover

"
Can you insure a car twice?
It's certainly not impossible, and it's not illegal, but that doesn't mean that you should choose to do it.

In fact, doubling up on your insurance is not only potentially costly but it could cause real problems should you ever need to make a claim.

Contribution clauses mean that both insurers would be in contact with each other to see how much they each need to put towards your pay-out, and there's no guarantee that they will agree. Such cases can delay your claim significantly, causing you an entirely unnecessary and avoidable headache."

Lopéz · 2 May 2019 at 08:56

Yes, but that's you insuring yourself on the same vehicle twice, not insuring two different people to drive the same vehicle.

rodenal · 2 May 2019 at 08:59

This is complicated by the fact one is a traders policy too.

I think it should be doable to but have the two policies but best to call the business insurance and talk to them about it.

mccarf · 2 May 2019 at 09:34

~~When my friend has borrowed some of my cars he's just used this:~~
~~https://www.admiral.com/car-insurance/car-sharing~~

~~Was pretty quick and easy. Your friend can just say how long she needs the insurance for, pay it and she's covered. Iirc it was all online too so no need to ring up.~~

Edit: Sorry didn't notice the long term bit