Fleet News

Insurance chaos leaves staff on roads illegally

CONFUSION caused by the vast array of insurance products in the market is leaving hundreds of employees illegally using their vehicles for business use.

Many drivers who have opted out of company car schemes are left to source their own insurance but many are not sure whether the cover they have chosen is suitable for work purposes. A fresh warning has been issued to fleet managers that they and their company’s HR department must work with employees to ensure the correct insurance is chosen.

It comes from executives at leasing company ALD Automotive, who say many companies would benefit from seeking professional advice.

Tim Hutton, account director at Lloyd Latchford Insurance Consultants, the broker that advises ALD, said: ‘Many employees are left on their own to obtain insurance cover having opted out of company cars and, perhaps not surprisingly, they purchase the cheapest cover available without actually checking exactly what they are buying and whether or not business use is included. It is almost certain that the cheapest such cover will not entitle business use.’

Earlier this year, members of the East Anglia region of the Association of Car Fleet Operators said a variety of codes used by insurers to indicate the same level of cover left them struggling to ensure drivers in private vehicles were insured to drive on business (Fleet NewsNet, August 11).

They complained that the problem was made worse because there is not just one type of business-use insurance.

ALD Automotive sales director Mel Dawson said: ‘The complexity of the insurance market, coupled with the fact that driving with the correct insurance is a legal essential, means that it is imperative that companies obtain professional advice to ensure that both they and their employees are covered in the event of an accident.’

  • What do you think? Email fleetnews@emap.com
  • Leave a comment for your chance to win £20 of John Lewis vouchers.

    Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

    Login to comment


    No comments have been made yet.

    Compare costs of your company cars

    Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

    What is your BIK car tax liability?

    The Fleet News car tax calculator lets you work out tax costs for both employer and employee