Loaning a Car to a friend.

Orionaut

Orionaut

Orionaut

Soldato
Joined
2 Aug 2012
Posts
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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)
 
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.
 
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.
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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.
 
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.
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What?
 
[TW]Fox said:
What?
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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.
 
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.
 
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)
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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.
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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.
Click to expand...

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

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.
 
Gaygle said:
Most insurances I've seen state that there must be no other insurance that covers the vehicle at the time.
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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.
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No idea, just stating what I was told by my insurance (Adrian Flux)
 
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.
 
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."
 
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.
 
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