Courtesy Car Accident?

Question

While my car was being repaired under warrenty my wife - a named driver - was given a courtesy car. Unfortunately as she left the garage she clipped a security bollard and damaged the rear wing of courtesy car.

When I spoke to the garage they said that I would be covered under my own fully comprehensive policy and that would cover the cost of the repair. I have since read the policy booklet and I have discovered that, although I am covered to drive other cars, we are only covered under a 3rd party basis.

Although my wife has her own policy on her car - I would prefer to have my policy cover the claim as it was my car involved and I have protected NCD.

Should the garage have its own cover in place for such situations..? I remember that when I took a test drive with the company (different branch) I was covered under their insurnace but would have to pay an excess should anything go wrong - should this happen again..?

Any advice would be grateful.

Thanks

Vis.

Answer 1

This is not a third party claim. If you have collision or comprehensive coverage, that's first party coverage (it pays for damages to your vehicle if it is damaged). Accordingly, if you are in a temporary substitute vehicle the coverage under collision shoudl extend to the loaner car, but the deductible would still apply. Usually insurance follows the vehicle for liability (third party) but not for physical damage, although it just depends on what state or country you live int. I think you're misinterpreting the policy.

Answer 2

You are correct in your interpretation of the policy. As this was a Courtesey Car aranged by yourself and not by the insurance company, you're policy is likely to cover TP only whilst driving other cars.

However, you are also quite correct in expecting the garage to have a policy covering the car. There is something in the insurance business called 'motor trader policies'. These are policies, surprisingly enough, tailored towards motor traders e.g. covers test drives, any car, any drivers.. and courtesey cars.

Motor traders know the insurance business inside out and quite often will do anything they can to avoid a claim - even though it has little effect on their policy. I would push for the insurance company to deal with it under their own cover.

One point to note, if the insurance company believes that you were to blame for the accident then they could potentially seek a recovery from you. This will vary by insurance company as to how they rate their social standing, how much the claim is, what chance of a full recovery (e.g no point trying to recover £40k from a 17 year old etc.). Best case scenario is that they will leave you alone and you don't have to claim on your own insurance!

Answer 3

From a legal standpoint, the courtesy car is a hire car. Car hire companies are only required to provide TPO cover by law.

For the most part, hire cars have an extremely high comprehensive excess -- often the entire value of the car. You can usually purchase additional cover though that's even subject to a non-waiverable excess often as high as £1,000!

If your policy does not offer comprehensive cover for a temporary replacement vehicle there's no way to get your insurance company to pay. Do review your policy again, though. Some may only provide TP cover when driving someone else's car, but will provide full comprehensive cover for a temporary replacement or substitute car whilst yours is being repaired.

If your wife's insurance does cover such use, the claim will have to be processed through her insurance company. As she was actually driving the courtesy car, it probably would have to be processed that way anyway.

Taking a test drive is different from operating one of their hire cars.

Answer 4

It's a courtesy car. If she didn't sign a paper agreeing to be responsible for all damage, then THEY are responsible for it. Yes, your policy would *likely* (but not 100%, check with your agent!) carry over onto their car, as it's a temporary substitute vehicle, BUT, it's a COLLISION loss, and subject to YOUR COLLISION deductible, which you would have to pay OUT OF POCKET.

Actually, whichever policy covers the car that was in the shop, is the ONLY policy which could carry over.

YES, the garage probably has coverage on this car, but they probably have a $1,000 deductible, or higher. They are trying to NOT put the claim in on their policy. You probably don't want your policy to pay, either.

If it were me, I would tell them, her car doesn't have collision, or her policy won't cover it. If there's nothing in writing, she is NOT obligated to pay. They can try to take her to court, but they probably won't.

BTW, this is why very few dealers or repair shops do "courtesy cars" any more - there are ALWAYS claims, and the dealers ALWAYS end up eating it.

Answer 5

Your best bet is to call the insurance company you would like to have cover the claim and ask them. Some insurance companies have rental coverage but this sounds a bit trickey since it really doesn't fall in the "rental" category! I'm willing to bet though, if both you and your wife have separate policies she will have to file under hers! By the way, how did you manage separate policies for a married couple in the same household? I had a cousin who received a DWI and his wife attempted to get her own insurance to avoid the huge premium increase he put upon them. The insurance company jumped right on that and nullified the whole idea right from the get go!!!

Answer 6

If you are on each others policy, which includes courtesy car then you should be covered. You need to call the insurance company and find out. Sometimes we don't all read the fine print and we get screwed. To avoid this in the future you might need to add extra insurance on your policy. Sorry about the accident. Good Luck

Answer 7

you are covered under your policy for any car provided by a reccomended repairer whist your car is undergoing repair on the same basis as your normal insurance.

So yes, the garage is likely to be correct, have a word with your insurance company to check

Answer 8

In the US, (I assume you are not here), insurance follows the vehicle. If the garage does not have collision coverage on the courtesy car you coverage will extend under 'temp. substitute vehicle'.

Answer 9

your wife was driving the vehicle, she hit something, therefore she must pay any out of pocket fees involved with the damage.

Answer 10

easy, stop you,re wife from driving