Car vandalised whilst at ClientCo - Repairs reimbursable?

[pacontracting]

You think incorrectly.

Lots of insurers cover you for driving to different clients as someone who is a contractor/company director/runs their own business.

Basically if you don't have any/ don't have a lot of equipment, don't have regular passengers and work in an office you aren't much of a risk until something like this happens.


If he notifies his insurance company (he can't claim due to the amount being under his excess) his insurance premiums will go up.

However the policy will state he needs to notify them and if he has another mishap then he could end up in hot water.

I guess most policies cover drivers for 'social, domestic and commuting'. Neither of these cover travelling to a client site if you are claiming business mileage. You are either commuting or you are not.

[DiscoStu]

I guess the point was - that if you were driving for business purposes (excepting commuting as you are claiming business mileage so not commuting) - are you actually insured for driving for business to a client. I think only Direct Line covers this.

Anyway - if you are covered, I would still claim it from myCo. Your company is reimbursing you for damage to your personal car while on business.

Wrong and wrong.

Lots of companies offer business cover. Unless the repair was wholly and exclusively for business use (which it isn't), then it isn't claimable from the business unless it's declared on the OP's P11D as a BIK, in which case there's no advantage for the OP to claim it through the business.

[pacontracting]

Wrong and wrong.

Lots of companies offer business cover. Unless the repair was wholly and exclusively for business use (which it isn't), then it isn't claimable from the business unless it's declared on the OP's P11D as a BIK, in which case there's no advantage for the OP to claim it through the business.

My point was - lots of personal insurance don't cover business travel. The only one I know of (a personal policy) is Direct Line.

The repair was required because the OP was on business, so I would argue that he wouldn't have been there in this particular circumstance if it were not for his business. Frankly I'd claim and make the argument to the HMRC if challenged.

[SueEllen]

I guess most policies cover drivers for 'social, domestic and commuting'. Neither of these cover travelling to a client site if you are claiming business mileage. You are either commuting or you are not.

Wrong again.

It depends on how you get your quotes.

Insurers (and their websites) and brokers don't presume anything. I live in a rather large English city and their are plenty of people who only use their car(s) for social and domestic use which is cheaper to cover.

On the other hand online comparison sites make assumptions due to the number of customers who put in the same thing. This can lead to problems later on when people click through.

[pacontracting]

Wrong again.

It depends on how you get your quotes.

Insurers (and their websites) and brokers don't presume anything. I live in a rather large English city and their are plenty of people who only use their car(s) for social and domestic use which is cheaper to cover.

On the other hand online comparison sites make assumptions due to the number of customers who put in the same thing. This can lead to problems later on when people click through.

I usually deduce what a policy covers by reading the policy. It's usually pretty clear whether the policy you are buying covers business use. I'm happy for you to suggest a personal policy that covers business use by default (apart from Direct Line).

Do the majority of contractors think about this before they buy their policy? I hope they do and specify business use as part of the application process but I'm sure there are those that don't.

[DiscoStu]

My point was - lots of personal insurance don't cover business travel. The only one I know of (a personal policy) is Direct Line.

The repair was required because the OP was on business, so I would argue that he wouldn't have been there in this particular circumstance if it were not for his business. Frankly I'd claim and make the argument to the HMRC if challenged.

And anyone who's using their car for business should insure it appropriately. I've insured several cars through several different insurance companies who've all happily added business cover for a very small fee.

Re the second point, perhaps you should read this:
http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

Particularly the part that says You are not entitled to any additional relief if your actual expenses are more than the tax-free amount, whether for interest payments, business insurance, depreciation or any other payments you may have to make on your car.

[SueEllen]

I usually deduce what a policy covers by reading the policy. It's usually pretty clear whether the policy you are buying covers business use. I'm happy for you to suggest a personal policy that covers business use by default (apart from Direct Line).

Do the majority of contractors think about this before they buy their policy? I hope they do and specify business use as part of the application process but I'm sure there are those that don't.

Yep.

This is covered in the many first timers guides.

Though there are always a few idiots who appear on various contractor and moneysaving sites arguing that they don't need business cover..................

[pacontracting]

And anyone who's using their car for business should insure it appropriately. I've insured several cars through several different insurance companies who've all happily added business cover for a very small fee.

Re the second point, perhaps you should read this:
http://www.hmrc.gov.uk/mileage/employee-factsheet.pdf

Particularly the part that says You are not entitled to any additional relief if your actual expenses are more than the tax-free amount, whether for interest payments, business insurance, depreciation or any other payments you may have to make on your car.

i wouldn't consider it relief. If the OP were to sue his employer (himself) because he suffered a loss while on company business - he would claim damages to being him back to the state he were in before he suffered that loss. That would be the cost of the repairs.

[SueEllen]

i wouldn't consider it relief. If the OP were to sue his employer (himself) because he suffered a loss while on company business - he would claim damages to being him back to the state he were in before he suffered that loss. That would be the cost of the repairs.

That's what insurance is for.

It's not his employer's fault he decided on such a large excess for his car insurance policy. He could have chosen to have £0 excess.

[DiscoStu]

i wouldn't consider it relief. If the OP were to sue his employer (himself) because he suffered a loss while on company business - he would claim damages to being him back to the state he were in before he suffered that loss. That would be the cost of the repairs.

FFS, this is like arguing with AtW