contractor car insurance claim

[HardCop]

Hi guys,

I am new to contracting and have been contracting for a few months.

Unfortunately had a recent accident. And after checking my insurance policy I realised that my insurance is not for business or commuting purposes. It is only for social/personal purposes. Did not realise that I will be needing a different type of insurance.
I was travelling from one city(the address on my insurance policy) to other. My destination city (where my contract is based) I have rented a room near the work place. I have never used the car for daily commute.Instead use the car when commuting from my temporary home to my primary home to see my family. This happens every two weeks or so on a weekend.

This is a more general question - would my insurance provider refuse my claim If I tell the truth. I would rather come clean. I can argue I do not use my car on a daily basis for work commute.

[WTFH]

Hi guys,

I am new to contracting and have been contracting for a few months.

Unfortunately had a recent accident. And after checking my insurance policy I realised that my insurance is not for business or commuting purposes. It is only for social/personal purposes. Did not realise that I will be needing a different type of insurance.
I was travelling from one city(the address on my insurance policy) to other. My destination city (where my contract is based) I have rented a room near the work place. I have never used the car for daily commute.Instead use the car when commuting from my temporary home to my primary home to see my family. This happens every two weeks or so on a weekend.

This is a more general question - would my insurance provider refuse my claim If I tell the truth. I would rather come clean. I can argue I do not use my car on a daily basis for work commute.

Yes, your insurance provider would refuse the claim. You are a contractor, and if you are driving to somewhere to stay as part of your work, then you're using the car for work. You might not be using the car to drive to your client's site every day, but you are using it for work.

Here are a couple of questions:
Are you claiming subsistence/expenses in your rental property?
Would you be staying in that property if you did not have a client in the area?

So, your implied question: Do I tell the truth?
Simple: Yes.
If you don't, when they research what happened - and hopefully you have witness statements - they will raise questions about your journey. At best they won't pay out, at worst they'll accuse you of insurance fraud.

[vwdan]

Yes, you should have had at least Class 1 business insurance. Yes, they'll likely refuse the claim if/when you fess up.

To be frank, this a huge oversight on your part and has the potential to become a real problem for you (Ever been asked "Have you ever had insurance declined, cancelled..." etc?).

That said, if I'm being honest, I don't recall ever being asked much detail about the journey during an insurance claim.

[Lance]

most S,D & P policies include an amount of commuting anyway.
Some even have an element of business travel.

1) read the schedule and policy as the actual cover will be written in there. We don't know the full details so cannot help any more than some basic reading.
2) be honest, but circumspect with any information you provide

[northernladuk]

Are you claiming the mileage on the journey between home and temp location?

Did not realise that I will be needing a different type of insurance.

This is a good example of where thinking like a business can clarify the difference between business and personal rather than people just tick box contracting.

I'd echo WTFH's final paragraph. Insurance companies will look for any out during a claim, even going down to checking the condition of your tyres in a situation I had many years ago. They do this all day everyday so a simple blurring of the lines isn't going to stop them getting to the bottom of things. If they do have to spend time and effort to uncover your false declarations the fall out has the potential of being much worse.

If you're with a bigger company and have not picked the cheapest you've got a better chance of them classing this as a commute but certainly wouldn't be resting on my laurels on this one. You get what you pay for so the cheapest in the market are likely to be more aggressive with an investigation.

[fiisch]

Did the accident occur whilst on he weekly/bi-weekly commute?

Provided you are based in the same office location (it does matter if this varies by contract, as long as for each contract it's a single place of work), this would come under the Commuting Use as opposed to Class 1 business use. There is normally an element of commuting use (500-1000 miles) included with the standard SDP cover.

The commuting extension normally makes a minimal difference to the quoted premium, and I've never in 10+ years working in insurance seen a claim refused on this basis.

I can't see an insurer refusing a claim on these grounds alone - certainly the Ombudsman would overturn that decision in an instant.

That said, I'd check your insurance and certain it covers you for what you need - it's not worth running the risk and saving a few quid, and it definitely isn't worth lying to your insurer after the event - that could see the claim refused entirely.

[northernladuk]

Provided you are based in the same office location (it does matter if this varies by contract, as long as for each contract it's a single place of work), this would come under the Commuting Use as opposed to Class 1 business use. There is normally an element of commuting use (500-1000 miles) included with the standard SDP cover.

Please log off and hand your account back on the way out.

I can't see an insurer refusing a claim on these grounds alone - certainly the Ombudsman would overturn that decision in an instant.

Really?

[psychocandy]

Did the accident occur whilst on he weekly/bi-weekly commute?

Provided you are based in the same office location (it does matter if this varies by contract, as long as for each contract it's a single place of work), this would come under the Commuting Use as opposed to Class 1 business use. There is normally an element of commuting use (500-1000 miles) included with the standard SDP cover.

The commuting extension normally makes a minimal difference to the quoted premium, and I've never in 10+ years working in insurance seen a claim refused on this basis.

I can't see an insurer refusing a claim on these grounds alone - certainly the Ombudsman would overturn that decision in an instant.

That said, I'd check your insurance and certain it covers you for what you need - it's not worth running the risk and saving a few quid, and it definitely isn't worth lying to your insurer after the event - that could see the claim refused entirely.

WTF???

But your "ofifce" is normally you're home address. And travel to client is business especially if you're claiming mileage which is a bit of a giveaway here!

Insurer WILL see it this way too. You're talking bollacks.

[mudskipper]

Yes, you should have had at least Class 1 business insurance. Yes, they'll likely refuse the claim if/when you fess up.

To be frank, this a huge oversight on your part and has the potential to become a real problem for you (Ever been asked "Have you ever had insurance declined, cancelled..." etc?).

That said, if I'm being honest, I don't recall ever being asked much detail about the journey during an insurance claim.

I had a shunt recently and I was asked about the purpose of my journey.

Many insurers charge no extra for business cover, so it's possible that they will allow it?

I agree with others - don't lie, it will only come back and bite you.

[vwdan]

I had a shunt recently and I was asked about the purpose of my journey.

Fair enough - maybe they're being a bit more inquisitive nowadays. Thankfully it's been a while