Insurance query

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Barrie
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Insurance query

Post by Barrie »

I have decided to sell one of my classics and so being the dutiful and conscientious person that I try to be I informed my insurers (Classic Line Insurance) that the car would be stored at a new address. This was their response:
"once a vehicle is with a dealer on sale or return any damage to the vehicle must become their responsibility as your insurers will not cover the vehicle if it is no longer in your care"
ie the car is not insured under my policy.
Has anyone encountered this before and is it standard practice in the industry?

Even though my car is no longer covered by them they have not offered me a refund of part of my recently paid premium which I will tackle once I have some opinions from the Forum.
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slotcarone
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Re: Insurance query

Post by slotcarone »

Would the same apply if you left the car at a repair shop for repairs that would take a few weeks? I believe what they are saying is not that it is not insured anymore but that any damage that occurs while there is their responsibility not the insurance company. :)
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David Davies
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Re: Insurance query

Post by David Davies »

Sort of doesn’t surprise me. One has to inform the insurer when taking out the policy where the car is to be stored eg at one’s home address garaged between 10pm and 6am. When a car has been having work done for several months I have told them and it has been an alternative place. In fact if there was damage or theft I imagine it would have been covered by the garage’s trade policy. in storage I have given the address - whether it is the storer’s policy or one’s own depends on the contract.

When a car is on sale I imagine it is driven under the dealer’s policy. As to customer’s driving it should fall under the dealer’s or customer’s policy, certainly not yours because they are not named drivers.

If the car was stolen or damaged/destroyed while on sale again I would imagine it would be the dealer’s policy but it all comes down to the contract you have with the dealer.

Until I had sold the car I would keep the policy as one does not know for sure what would happen if insurance companies and lawyers fight it out. In any case you might take the car back.

Musings of a non lawyer non insurance expert. Surely the cost of a classic car policy is quite small so it’s not a big issue?
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Keith
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Re: Insurance query

Post by Keith »

Gosh, I hope you trust your "sale or return" dealer Barrie, there's been so many horror stories.

As for insurance, get it in writing from the dealer that they now have it fully insured for an agreed vale, then cancel your own policy (and presumably get a refund).
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David Davies
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Re: Insurance query

Post by David Davies »

As I say I think it is premature to cancel your policy. You have not sold it yet and presumably you have a reserve in mind beneath which you would not sell or you may decide another route such as auction. I think I am right in saying that most if not all auction houses require you to have insurance of the car you are selling. If you cancel you would then have an uninsured car which you could not drive. Also who is to say where things stand legally if things go pear shaped.

I have never put a car with a dealer on a commission basis. I prefer a clean sale privately or at auction.
Jensen S-Type Tourer 1938 S44
Alvis Speed 25 1938
Mercedes CL 600 V12 2001
Used to own 1938 S-Type Tourer S34
Used to own CV8 MkII 104/2229
Used to own CV8 MkIII 112/2457
Author of Jensen: The Surviving 3 1/2 & 4 1/4 Litre Cars
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