Are you absolutely sure who is and is not “allowed” to drive your insured car for any claim to be successful?
If you have any doubt, I implore you to find your policy and read what it says about drivers very carefully.
Many insurers are only interested in the regular driver — the person who drives the car most often — and they base their premium on the risk of that driver: age, driving experience and claims history, mainly.
If someone other than the named regular driver has an accident while driving the car, the insurer may apply an extra excess, especially in the case of a driver under the age of 25, but they won’t reject the claim.
Not unless — and this is a biggie — their investigations reveal that the person driving at the time of the incident was actually the regular driver, and they’d based their underwriting on the wrong risk profile.
Then there are other policies which insist on a full list of anyone who may drive the car as “nominated drivers”.
If someone not nominated on the policy as a driver is involved in an accident or theft, the claim will be declined.
Consider how risky that is, given how commonplace it is to ask a friend to run an errand in your car, if you’ve parked them in, or for a mechanic to take your car for a test drive during a routine service.
And you can’t expect any wriggle room, if the case I’ve just taken up is anything to go by.
Consider how risky that is, given how commonplace it is to ask a friend to run an errand in your car, if you’ve parked them in, or for a mechanic to take your car for a test drive during a routine service.
Maria T of Pretoria’s 37-year-old son-in-law was driving her car, an 11-year-old Ford Fiesta, when, while stopped at an intersection, he was hit from behind by another car.
Her damages claim was rejected by her insurer, Dotsure, because the son-in-law was not listed on the policy as a nominated driver — only her daughter was, with Maria being noted as the regular driver.
“It is ridiculous and very disappointing of them to ignore that the car was bumped from behind while stationary,” Maria’s husband argued in an email to me. “This has got nothing to do with driver nomination.”
Sadly, insurance doesn’t work that way.
Dotsure told her in its repudiation letter: “You were advised that only nominated drivers, as reflected on your policy schedule, will be covered under this policy.
“We have no record that you nominated the incident driver as a driver. Given the non-compliance with policy terms and conditions, this claim is not covered.”
She was referred to her policy schedule, which states: “All drivers must be nominated on this schedule. If a driver is not nominated on the schedule, there will be NO COVER in the event of a loss.”
Maria took out the policy in 2013 and was paying a monthly premium of just more than R500 at the time of the accident.
I took up the case, asking Dotsure how the company had been prejudiced by the son-in-law driving the car.
“Under the circumstances, and especially given that the driver in question was stationary at the time of the incident, is Dotsure willing to reconsider its decision?”
I also asked if there was any way that a client with a nominated driver policy could arrange for cover when taking their car in for a service, for example, or handing their car to one of those “park and fly” type airport parking operations.
“If not,” I said, “they are highly prejudiced on such occasions.”
I received a lengthy response this week. Sadly, my intervention didn’t help Maria at all. But it did raise a red flag.
On three separate occasions, Maria was told what was at stake with respect to nominated drivers.
“Ma’am, please remember if anyone other than yourself is going to drive your car then you must let us know and have him or her noted on the policy, otherwise there will be no cover, all right,” one consultant told her
“OK, no problem,” Maria replied.
Sadly, my intervention didn’t help Maria at all. But it did raise a red flag.
It also emerged that while her daughter had taken over as the regular driver at one point, Maria hadn’t thought to alert the insurer, as she was already nominated on the policy. That’s also a mistake.
All in all, the repudiation was solid.
But what about my concerns about such a strict driver policy, in light of cars being taken for test drives by third parties and the like?
“Having considered these facts objectively, we submit that the concerns you have raised in your complaint are mere hypothetical cases which are irrelevant at this point, as the case at hand was dealt with on its own merits.”
There’s the red flag.
It’s certainly a valid point in relation to nominated driver policies in general.
Christelle Colman, CEO of boutique insurance provider Ami Sure, agrees.
“While I was taking part in a radio discussion on this topic recently, a woman called in to share a terrible story.
“She drove to Joburg’s ORT Airport, gave her car to a valet parking service, and when she landed in Cape Town, she discovered that her car had been written off while being moved to a site outside the airport precinct.
“The valet company’s contract included a clause indemnifying them, and her insurer pointed her to the nominated driver clause in her policy.
“The ombud for short-term insurance sided with the insurer, so she lost out completely.”
Coleman’s advice: if you do have a nominated driver clause in your policy, negotiate the addition of a paragraph that you will be covered if the car is being driven by someone in the employ of a dealership, repair shop or valet service.
“Ideally the nominated driver clause is only appropriate in high-end vehicles — valued more than R1m,” Coleman said.
“You can’t fight these things after the event has happened.
“You need to fight proactively: check your policy, ask the questions, and if they are very strict about the nominated driver clause, then either list everyone who may possibly, or take your business to a company which doesn’t have such restrictions.”
Quite right.
Now check your policy!
CONTACT WENDY: Email: consumer@knowler.co.za Twitter: @wendyknowler Facebook: wendyknowlerconsumer
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