# Commute to Work? Check your Insurance...



## Shiny (Apr 23, 2007)

Just a head's up following a thread on another forum i am on.

Someone had a hit a run (unknown third party) whilst their car was parked in their work's car park and their Insurers have refused to pay out as their policy cover does not include commuting! The insurance was bought online, so it appears to be a case of ticking the wrong box. However, since the post was made, a few people on the forum have checked their certificates and discovered their own insurance doesn't include commuting!

The Insurance industry "standard" if you like is that SDP includes commuting. However, some companies have an option to exclude commuting. Personally I would only ever quote someone exclude commuting if they were a housewife, retired person etc and make it clear that if they do get a job and need to commute to let me know. Our system has a choice of "SDP" which is SDP incl commuting or "SDPE" which excludes commuting. I always select "SDP" as a matter of course and would only ever enter "SDPE" if specifically requested to do so and the restrictions we made clear to the customer.

However, you don't get the luxury of a speaking to a handsome insurance broker like me when buying insurance online and it may well be the case that the use options aren't particularly obvious. Perhaps it might even be a bit of complacency and rushing through (especially if you have entered quote details half a dozen times on different websites), but always check what you get with SDP cover and if there is an option including or excluding commuting! Don't assume that SDP will include commuting automatically unless it says so!

Also be wary that you may need business use. You do not need business use to commute to a permanent place of work. However, if you commute to different offices, or drive to another office to a meeting, drop some post off on the way home, nip out to the shops for some milk for the office, or go to the bank to pay in cheques on behalf of the company, then you will need Class 1 business use (use by the policyholder (and/or spouse if needed) in connection with their business). A builder etc will generally need Class 1 as they are likely to travel to different sites, unless they only ever drive to the base/depot.

This is one of the major drawbacks of doing your own insurance. I reckon at least half of policies bought online are wrong because of errors in selecting the correct options or in most cases the policyholder not understanding the questions or what needs to be disclosed. I have to be able to demonstrate competence to the FCA and undergo continuous learning to be able to provide a quotation, but someone with no insurance knowledge at all can buy their own online, so always exercise caution!

I urge people just to check their insurance certificates and if they drive to work, ensure they have commuting covered under the "use" section on the certificate. If you use your car for business, even driving to different offices as mentioned, be sure you have personal business covered.


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## kenny wilson (Oct 28, 2008)

Cheers Lloyd, sage advice indeed, I wouldn't like to imagine the number of folk that would overlook this aspect of their insurance. I was struck by another vehicle in an RTC whilst travelling home from another station where I had been detached and it did cross my mind that it was not my 'normal place of work' 
Well, that was, until the boy gets out and says, "sorry mate, entirely my fault" 
All witnessed!
And sigh!


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## GleemSpray (Jan 26, 2014)

If you do any sort of volunteer / charity work using your vehicle check with your insurance company too. I got it added FOC, but, as ever, you need to make the disclosure and ask the question.

I would add that, from experience, it is worth speaking to a real person as they know who to ask at the Insurance company about Class 1 and how to phrase the question ! 

I have found in the past that initial Class 1 quotes are often loaded to include heavy commercial travelling and carrying samples / stock, wheras business use for some people can be little more than commuting, with a few trips away to other offices or customers.

Class 1 use, with suitable restrictions, can be surprisingly cheap to add if you give a full description of what you actually do for a living and how the vehicle is to be used.


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## Focusaddict (May 31, 2010)

This is why I always make sure I have commute included.


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## Mikej857 (Jan 17, 2012)

Thankfully due to the amount of modifications to my car I'm unable to simply take a policy out online so always get to speak to a person which makes it easier to ensure the policy caters for my every need


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## Rob74 (Jul 29, 2012)

Another thing I found out last yr was if I made a windscreen claim I would not have earned my no claims for the year. I talked to a lot of people including several glass companies who all said they had never known that to happen, I paid the £140 for new windscreen instead of £50 excess & no NCB for that year. 

Just be careful people


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## Jeli (May 30, 2013)

I buy a policy on-line with personal business cover. It's not much more than a standard policy but essential for my work as I travel to customers and pretty much act as a sub contractor.


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## Bigpikle (May 21, 2007)

all my classic car policies the last few years have specifically excluded commuting


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## suspal (Dec 29, 2011)

Thanks for the heads up Lloyd.


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## Kerr (Mar 27, 2012)

It's poor not to have one place of work included. I've noticed in recent years that there has been more options not to have a place of work included.

Horrible for the person to be caught out in such fashion. I'm sure if they realised their policy didn't include cover going to work they'd make up another excuse.

I'm sure loads of people don't read or understand their policy fully.


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## [email protected] (Sep 28, 2009)

Great advice there, certainly is worth double checking policies.



Shiny said:


> The Insurance industry "standard" if you like is that SDP includes commuting. However, some companies have an option to exclude commuting.


This is the only part I can say I would disagree with, we work with over 40 underwriters and over 200 schemes & all policies with SDP will only cover Social, domestic and pleasure. It's extremely rare to hear that this includes commuting, unless your policy specifically reads "SDP including commuting".

Another case I often hear is if a policy reads "Commuting" people often then worry that they can't use the vehicle for SDP as well. If you have a higher level of cover, you will almost always have SDP too.

Regards,
Dan.


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## Shiny (Apr 23, 2007)

GleemSpray said:


> If you do any sort of volunteer / charity work using your vehicle check with your insurance company too. I got it added FOC, but, as ever, you need to make the disclosure and ask the question.
> 
> I would add that, from experience, it is worth speaking to a real person as they know who to ask at the Insurance company about Class 1 and how to phrase the question !
> 
> ...


Indeed, volunteer and charity work often require Class 1 business use. Perhaps the most overlooked cases are when people need to go on a training day somewhere and drive their car there.

I wrote a basic Training Guide on motor quotes a few years back, this is an extract on "use" which may help people understand the difference Classes of use and the potential cost implications:

_*Use*

*SOCIAL DOMESTIC & PLEASURE* - allows use for social domestic and pleasure purposes (SDP), excludes any business use or even commuting to work. Normally only provided to retired persons, unemployed and housewives. Can attract a discount of around 10% off the standard rate.

*SDP & COMMUTING* - use for SDP and includes use to commute to and from a PERMANENT place of work. Cover applies to any person noted under the policy. Normal book rates apply.

CLASS ONE - as per SDP & Commuting and extends to include use by the policyholder in person in connection with his/her business (excluding commercial travelling). This allows business trips such as going to meetings at a different office, going to the bank, visiting customers (providing it is not commercial travelling, cold calling etc) and so on. This class of use is also necessary for persons who do not commute to a permanent place of work or have more than one place of work such as builders, electricians etc. Class One business use is often also available for the policyholder's spouse. Most Insurers will allow Class One use at no additional cost, some charge in the region of 10% above book rates.

CLASS TWO - as per SDP & Commuting and extends to include use of the vehicle in connection with policyholder's business (excluding commercial travelling). As the use is not restricted to the policyholder, it allows additional drivers (provided they are covered by the policy) to drive the vehicle on the policyholder's business. An example of this would be an Estate Agent's pool car where various employees use the vehicle on behalf of the policyholder's business. Additional drivers can not use the vehicle for their own business if this differs from the policyholder's business. Class Two use usually attracts a loading in the region of 30%.

CLASS THREE - as per Class Two, but extends to include use for Commercial Travelling and Selling. This use is required by Sales Representatives and the like. Class Three use usually attracts a loading in the region of 60%.

It is important to note that nearly all policies exclude use for hiring, racing, pace-making, competitions (other than treasure hunts), rallies, speed testing and any purpose in connection with the Motor Trade. Specific policies are available for Taxi drivers and Motor Traders that provide the appropriate use. Some Insurers will provide cover for Driving Tuition under Class Three use.
_



Rob74 said:


> Another thing I found out last yr was if I made a windscreen claim I would not have earned my no claims for the year. I talked to a lot of people including several glass companies who all said they had never known that to happen, I paid the £140 for new windscreen instead of £50 excess & no NCB for that year.
> 
> Just be careful people


As you rightly say, most Insurers provide windscreen cover under a Comprehensive policy without the loss of NCB. This should really have been pointed out to you when you took out the policy as an unusual feature, although it could have been detailed in the "keyfacts" that was supplied. It goes to show that you really do need to examine things thoroughly when comparing quotes. Things are often "cheap" for a reason.



Bigpikle said:


> all my classic car policies the last few years have specifically excluded commuting


This is pretty much the case with most classic car policies. They cater for the 2nd/3rd etc car garage queen that is only driven on sunny weekends and on a limited mileage. In return, the premiums are very well priced. If commuting is required, the Insurers usually like to know frequency and so on before they will grant it. Some just don't give the cover at all.



Kerr said:


> It's poor not to have one place of work included. I've noticed in recent years that there has been more options not to have a place of work included.
> 
> Horrible for the person to be caught out in such fashion. I'm sure if they realised their policy didn't include cover going to work they'd make up another excuse.
> 
> I'm sure loads of people don't read or understand their policy fully.


This is the trouble asking a computer to do your quote. Retired people, housewives, the unemployed etc don't need commuting, so there needs to be the option for them to choose this cover. A computer can't "think" (or at least Insurance quote engines can't), it can only process the data that is input. if someone is working, i will give them commuting as a matter of course, the premium is same in most instances anyway. I can also ask if they ever use their car for work and explain when they might need business use.

Don't even get me started on Motor Trade insurance :lol: , the misconceptions about what it covers never ceases to astound me :doublesho


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## Shiny (Apr 23, 2007)

[email protected] said:


> This is the only part I can say I would disagree with, we work with over 40 underwriters and over 200 schemes & all policies with SDP will only cover Social, domestic and pleasure. It's extremely rare to hear that this includes commuting, unless your policy specifically reads "SDP including commuting".


Yeah, I see what you are saying Dan, i think what i am getting at is that the standard cover should be SDP&C, from which you can exclude commuting for a discount or add class 1,2,3 for an additional premium.

A bit like Travel Insurance, standard cover includes baggage, but you can exclude it for a discount or add in extra covers for more money.

I do live in the past a bit though! :lol: The days of underwriting guides and loading/discounting a base premium seem to have passed me by!

I guess it doesn't work that any more, as you have to select from a drop down box and select the cover require. I kind of miss those days of trawling through half a dozen underwriting guides with my pen, paper and calculator. :lol:


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## m4rkymark (Aug 17, 2014)

I have commute and business use on my policy and it didn't add anything at all to it cost wise - better to be safe than sorry.


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