Insurance question

FluffySheep · 27 Sep 2009 at 19:50

I have started as a volunteer for a youth organisation, and sometimes the adults carry the kids in our own cars. For this we can claim petrol expenses. I know I can't become a taxi on regular insurance and I believe if I get petrol money it still needs a slightly different insurance clause. Can someone confirm this and can someone tell me how much it would cost to add to a policy if I will be doing less than 500 miles pa and claiming the petrol.

I don't want to be without insurance but I don't want to be sold a massively overpriced 'addon' to a basic policy.

Thanks in advance
Fluffy

iaind · 27 Sep 2009 at 19:53

If you're using the car for business purposes you need business class insurance (rather than just social domestic and commuting) - most companies will not pay your expenses unless you have this.

As for cost, not much if at all - didn't change my price at all

FluffySheep · 27 Sep 2009 at 20:11

iaind said:
If you're using the car for business purposes you need business class insurance (rather than just social domestic and commuting) - most companies will not pay your expenses unless you have this.

As for cost, not much if at all - didn't change my price at all

This is the question: I am an *unpaid* adult volunteer. The driving is not for a business, the organisation is a registered charity. What do I need?

iaind · 27 Sep 2009 at 20:12

I'm fairly sure its the same - you're driving for a commercial interest, even if you're not being paid for it.

Cob · 27 Sep 2009 at 20:20

I may be miles off, but I thought taking money for petrol didn't affect your insurance unless you were making a profit from it?

iaind · 27 Sep 2009 at 20:24

Cob said:
I may be miles off, but I thought taking money for petrol didn't affect your insurance unless you were making a profit from it?

Its nothing to do with the money they're paying you - you'd need to be insured for the correct purposes even if you werent claiming expenses.

Normally insurance would state the type of use, which is normally "social, domestic and commuting" - what the OP describes is none of those. The best thing is to check with the insurance company as they normally have different classes of business use

Cob · 27 Sep 2009 at 20:31

So a Boy Scout leader needs a class of business insurance to drive a couple of his group to the latest jamboree?

Sin_Chase · 27 Sep 2009 at 20:35

I assume business use is for anything other than SDP and Commuting that could be classed as "business" regardless of whether you are being paid for it or not.

I think there is 3 main business use classifications which seem to differ between the companies. Being Basic Business Use for Policyholder, Business use for PH and named driver and commercial use.

Just call them and explain your situation and they will advise.

iaind · 27 Sep 2009 at 20:36

Cob said:
So a Boy Scout leader needs a class of business insurance to drive a couple of his group to the latest jamboree?

Probably.

A parent doing the same thing probably wouldn't as it would fall under social use, but as the scout leader actually has an affilation with the group it would mean he's working for them.

The insurance company will be able to clarify, but the usage isnt social, its not domestic and its not commuting - so it needs changing

[TW]Fox · 27 Sep 2009 at 20:37

iaind said:
I'm fairly sure its the same - you're driving for a commercial interest

No he isn't.

Cob · 27 Sep 2009 at 20:39

Should be something he'd be able to claim on expenses too then if there is a price difference.

I get around · 27 Sep 2009 at 20:46

Keep your personal I say, I highly doubt you'll get a rollocking for doing charity work.
It's social charity.

iaind · 27 Sep 2009 at 20:51

I get around said:
Keep your personal I say, I highly doubt you'll get a rollocking for doing charity work.
It's social charity.

Considering the cost of changing could be as low as zero, its not worth risking because you "highly doubt" it's a problem

FluffySheep · 27 Sep 2009 at 20:54

Cob said:
Should be something he'd be able to claim on expenses too then if there is a price difference.

I know this for certain and no I can't.

The example of a scout leader is the closest to what I do: purely voluntary, away from my job, unpaid and I get a flat rate per mile for car use (not sure of the exact rate atm)

iaind · 27 Sep 2009 at 20:56

The fact they're paying you would indicate the relationship between you and the organisation is more than purely a social interest.

Your insurance company will be able to give you the answer - just give them a call and ask the question.

FluffySheep · 6 Oct 2009 at 21:38

Update:

I went with Zurich as they (almost) matched my best renewal price (and this way I don't have to screw about with proof of NCB) and when I asked about the addon they said I needed class A business use. All of £10.

All sorted now. Ta for the advice OCUK
FluffySheep

Tee Hee Johnson · 6 Oct 2009 at 23:19

I added business class 1 to my policy, on my 145 2.0 petrol, and it came to £21 for the year... and im sure the guy said £15 of that was admin charges