An Introduction to Car Insurance claims and the claiming process

Car Insurance Claims in the UK - Insurable Interest

What is an 'Insurable Interest' in the car?

In motor and car insurance an insurable interest in the vehicle may arise in many ways including the following examples:

i) As owner

ii) A hire purchase company has an insurable interest until, on payment of the last instalment, the vehicle becomes the property of the purchaser. The hire purchase company is protected by the special provisions of the comprehensive motor policy.

iii) A hirer will be entitled to insure his third party liability and, depending on the terms of the hiring agreement, the damage risk. He could insure the cash deposit he may lose in the event of a claim.

iv) A relative or friend may borrow the vehicle and may insure comprehensively in his own right. It should be noted, however, that if the loan of the vehicle is for a short period only (e.g. for two weeks), the insurers will normally insist that the friend or relative simply be added to the already-existing policy as an additional driver; few insurers would wish to issue a separate short period policy. If, on the other hand, the period of the loan is for, say, a year, it will be recognised that the borrower is in effective control of the vehicle and insurance cover can normally be arranged in the borrower’s name, subject to the identity of the actual owner being shown in the policy.

see also Establishing Driver cover

Other Insurance Company Interest in the claim
If the driver (even if he is the policyholder) has a policy in force with another insurer, the present insurers are put upon enquiry. The insurers have to satisfy themselves that there is no other insurer interested in the claim, either under an inter-insurer agreement or by way of contribution.
Also, the underwriter may have his suspicions aroused and deem it worthwhile to enquire of the other insurers their experience and terms. It may be that the driver (or the policyholder) has another vehicle insured elsewhere and enquiry may reveal that another insurer has refused to cover the driver (or the policyholder) or has granted cover subject to rigorous terms.
If this background has not previously been disclosed to the present insurers, the latter might argue that there has been a material nondisclosure prejudicial to their interests and in serious cases they may repudiate liability under their policy.

If you are looking for information on how to claim or what to do in the event of an accident please visit your particular insurers website by following any of the links on this site.

CAR INSURANCE BROKERS
INFORMATION ABOUT CLAIMING ON YOUR CAR INSURANCE
All the leading online Car Insurance Brokers in the UK