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Originally Posted by Rob C
That linked article seems a little odd. In particular the idea that someone insures a cheap car so they can drive an expensive one 3rd party. How do they tax the expensive car, when you have to show an insurance certificate. What about fire & theft cover on your pride & joy  |
When you go to tax a car, the insurance certificate is supposed to specify the car that you are taxing. The exception is where the driver is insured for any car, but the car must then be in the insured person's name. There is a loophole in this, but that's another matter. It's worth remembering though, that this type of policy (usually motor trader policies) are very expensive.
Now, the current "driving other car" policies are a little bit sneaky. They tend to stress that the car must belong to someone else. Also, they often state in the small print that the car must already be insured. The cover granted for driving other cars is nearly always 3rd party as well. And nowadays some policies will state that you can drive other cars "in medical emergencies" and a few other scenarios.
Insurers are clamping down, to the abuse of the system in the past. Premiums do go up year on year, but people don't realise the reasons why, as they only think that they themselves haven't had a claim. But personally I think we pay way too much insurance anyway.