Courtesy cars

[MrC 142]

Thinking of running a Courtesy car, got a cheap low mileage 2010 KA last week. Insurance want a massive £115 to add it on to the end of the Policy (December). 

Only thing that puts me off is risking our NCB.

Thoughts please guys?

[BHM 994]

You must be fucking mad. Let them order a taxi.

I base this comment on one single ‘experience’. A friend ran a couple of courtesy cars for his various scumbag customers (car sales + a workshop) & then one day one was wrecked. A proper job, driver pissed-up, a number of parked cars smashed up, the courtesy car looked like it had been dropped out of an aeroplane.

I don’t know how insurance companies work but as well as the NCB, the policy was loaded & his next year’s bill (which I saw) more than doubled to over £8K and that was after he’d pared back cover. Over the next few years it must of cost him a five figure sum, all for someone who walked away financially scott free.

[Casper 272]

Is there no way you could ask customer to self insure and provide proof of insurance just a thought a garage that did work for me used to do this sounds daft but many were happy to do it for the use of car and was still cheaper for them to take out 7 days insurance rather than hire a car 

I don't think it would be worth it otherwise risking ncb and insurance costs in the event of an accident 

[EPV 631]

I have a loan car and its on the MID but i tell customers to sort their own insurance.  The courtesy car is worth about £35 so if they put it in a tree no harm done. 

[Nick M.K. 574]

My courtesy car add on on my insurance was £30 for last year. 

Don’t have a dedicated one but usually tax a p/x or just a cheaper stock car that sits longer. 

As soon as I send a stock car as courtesy the phones start ringing on it :-) 

[trade vet 702]

Beware of lending out cars on the customers own insurance.If something untoward happens and some fault is found effecting road worthy ness like a not fully efficient handbrake ,it is down to you.There have been cases where dealers have been charged.Sometimes when I have had someone who understood the liability,I have just invoiced them for the loan car which they have signed and let them use their own cover.When they returned,the invoice was torn up.This was long ago but after that if it was a big job,we had a cheap hire car deal.I think you should have some sort of separate cover for supplying courtesy cars.

[David Horgan 564]

We have a 107 08 plate 51k on clock , PX i took in last year for £150 , added to MID with no loading as we have courtesy car insurance , I charge £20 for insurance and a £200 deposit so they look after it , Picture of their licence and a signed declaration of the fact they are responsible for the first £1,000 as it concentrates their mind .

Fuel is fill as found . 

[Casper 272]

2 hours ago, trade vet said:

Beware of lending out cars on the customers own insurance.If something untoward happens and some fault is found effecting road worthy ness like a not fully efficient handbrake ,it is down to you.There have been cases where dealers have been charged.Sometimes when I have had someone who understood the liability,I have just invoiced them for the loan car which they have signed and let them use their own cover.When they returned,the invoice was torn up.This was long ago but after that if it was a big job,we had a cheap hire car deal.I think you should have some sort of separate cover for supplying courtesy cars.

Interesting trade vet thanks 

[grant8064 219]

Not worth the hassle for us, just inviting problems into your life. Unless you're a busy repairing garage people don't expect a courtesy car when they're buying used and if they do just reset their expectation level.

[NOACROSS 414]

Had a Courteousy Car for years.  Nothing special, but never had any issues.  However, I don't advertise the fact and only lend it out to people I like or pass the Moron Test.

[Holmfirth Cars 12]

AVOID AT ALL COST / a friend of mine ended up in court because a lady killed somebody in the loan car he lent her , 3 years of legal hell, police, lawyers, guy had a nervous s breakdown and went Bankrupt .....

[MrC 142]

I think its got to be one to swerve, we've managed fine without so far. 

Let them arrange their own travel logistics.

[Casper 272]

41 minutes ago, Holmfirth Cars said:

AVOID AT ALL COST / a friend of mine ended up in court because a lady killed somebody in the loan car he lent her , 3 years of legal hell, police, lawyers, guy had a nervous s breakdown and went Bankrupt .....

Shame to see that happen poor guy losing everything inc business and health when only trying to help someone by offering them a loan car and then a terrible thing like that then happens 

Edited February 5, 2020 by Casper

[David Horgan 564]

58 minutes ago, Holmfirth Cars said:

3 years of legal hell, police, lawyers, guy had a nervous s breakdown and went Bankrupt

Thats bad news for helping a customer isnt it , Bad new for the dead person too  but was the drivers fault not the garage owner . Litigation now days is as bent as it comes . 

[Casper 272]

Yes it is David tragic for everyone involved 

53 minutes ago, David Horgan said:

Thats bad news for helping a customer isnt it , Bad new for the dead person too  but was the drivers fault not the garage owner . Litigation now days is as bent as it comes . 

 

[BHM 994]

Slightly off topic but I get the occasional person asking if I’ll do them day insurance to get them home. As a one man band I have absolutely no intention whatsoever of getting involved in the legalities of strangers driving on the highway. Your insurance paperwork would have to be absolutely watertight because, my guess is, they’d come after the small car dealer not the big insurance company.

I imagine any irregularity would be pushed my way - “No Your Honour, I told him I have 12 points on my provisional licence but he said I’d be ok for the next fortnight”, swiftly followed by their defence barrister “It is most unfortunate my client mowed down the bus queue of school kids but the financial burden of compensation for the grieving families surely lies with BHM who, my client attests, was responsible for completing the drive-away insurance”. 

If a customer is either too lazy or too skint to insure their new wheels I’m not interested in getting involved & exposing myself to risk. 

[Mark101 536]

I have a Mini ONE D on a 61 plate. Have fitted a new turbo and if I sell it I would never recoup my costs so, it makes perfect sense to retain that as our runaround/courtesy car/pool car etc.

I never advertise the fact that I have a courtesy car and I only use it to MY ADVANTAGE. I.e to buy me time to fix a car on my terms/price. It is great to have but I really do pick n chosse who can have it. I don't care too much about the vehicle but I do want to protect my insurance premium.

18 hours ago, BHM said:

Slightly off topic but I get the occasional person asking if I’ll do them day insurance to get them home. As a one man band I have absolutely no intention whatsoever of getting involved in the legalities of strangers driving on the highway. Your insurance paperwork would have to be absolutely watertight because, my guess is, they’d come after the small car dealer not the big insurance company.

I imagine any irregularity would be pushed my way - “No Your Honour, I told him I have 12 points on my provisional licence but he said I’d be ok for the next fortnight”, swiftly followed by their defence barrister “It is most unfortunate my client mowed down the bus queue of school kids but the financial burden of compensation for the grieving families surely lies with BHM who, my client attests, was responsible for completing the drive-away insurance”. 

If a customer is either too lazy or too skint to insure their new wheels I’m not interested in getting involved & exposing myself to risk. 

The amount of people who say "Can I drive this home on your insurance and I will sort it later?" Unbelievable - that's a big fat no chance.

[JA Trader 58]

38 minutes ago, Mark101 said:

The amount of people who say "Can I drive this home on your insurance and I will sort it later?" Unbelievable - that's a big fat no chance.

Its never the nice customers who ask this either.

[Mark101 536]

5 minutes ago, JA Trader said:

Its never the nice customers who ask this either.

It's never the "normal" customers. Who in their right mind doesn't just sort out their insurance before they collect a car, especially when they have had to wait a couple of days for the MOT and PDI etc.

[JA Trader 58]

5 minutes ago, Mark101 said:

It's never the "normal" customers. Who in their right mind doesn't just sort out their insurance before they collect a car, especially when they have had to wait a couple of days for the MOT and PDI etc.

LIKE

[BHM 994]

9 hours ago, JA Trader said:

Its never the nice customers who ask this either.

Greedy fucking bastards, usually.

10 hours ago, Mark101 said:

The amount of people who say "Can I drive this home on your insurance and I will sort it later?" Unbelievable - that's a big fat no chance.

I regularly hear the line “I’ll drive it home and sort out the insurance & tax later”. Utter nonsense. 

Also the number who say “I’m insured for other people’s cars so I’m covered” (on THEIR car THEY have just bought ) is high.

[Ashley@UKGlobal 6]

On 4 February 2020 at 9:36 PM, MrC said:

Thinking of running a Courtesy car, got a cheap low mileage 2010 KA last week. Insurance want a massive £115 to add it on to the end of the Policy (December). 

Only thing that puts me off is risking our NCB.

Thoughts please guys?

Courtesy cars do seem like a good idea at first as they are a useful tool for your business, giving a courtesy car adds that extra touch to your service. However, if the worst happens and a claim occurs that turns out to be the customers fault, it's your trade insurance that will take the hit, this can be very damaging to your claims record and can significantly increase your premium when your renewal comes around. If you do decide to give out courtesy cars it is strongly recommended that you manage it carefully and only give them to trusted customers. 

[New year revolutions...... 197]

2 hours ago, Ashley@UKGlobal said:

Courtesy cars do seem like a good idea at first as they are a useful tool for your business, giving a courtesy car adds that extra touch to your service. However, if the worst happens and a claim occurs that turns out to be the customers fault, it's your trade insurance that will take the hit, this can be very damaging to your claims record and can significantly increase your premium when your renewal comes around. If you do decide to give out courtesy cars it is strongly recommended that you manage it carefully and only give them to trusted customers. 

Hi AShley ,this is very sound advice you give.

I can relate a story that crushed a business due to a car crash whilst a loan car was used too,I  would never do it as most customers think they can abuse the privilege they are offered,even simple things like speeding tickets are a nightmare as you chase up the hopefully signed paperwork the customer signed thus ensuring you as the named owner doesn't take their sp60

Nap not for me,theycan take shanks's pony

[Ashley@UKGlobal 6]

1 hour ago, New year revolutions...... said:

Hi AShley ,this is very sound advice you give.

I can relate a story that crushed a business due to a car crash whilst a loan car was used too,I  would never do it as most customers think they can abuse the privilege they are offered,even simple things like speeding tickets are a nightmare as you chase up the hopefully signed paperwork the customer signed thus ensuring you as the named owner doesn't take their sp60

Nap not for me,theycan take shanks's pony

Yes it is certainly a risk in a number of ways, I am a insurance broker specialising in the motor trade sector so as you can imagine I see these things happen quite often. That is a great point you make about speeding offences or points incurred whilst the customer has the courtesy car, even parking tickets incurred will come to you as the owner of the vehicle. That's why I give a 'loan vehicle form' to all of my clients who have the courtesy car cover, as long as the customer signs the form they accept full liability in the event of points incurred / speeding tickets / parking fines and even the maintainence of the vehicle is put onto the customers head (oil, tyres properly inflated etc)

Some of my clients also put 'excess clauses' into the courtesy car agreement, meaning in the event of an accident or damage caused to the vehicle the customer has to pay an inflated excess or lump sum.

It is also recommended to take copies of driving licenses and carry out checks to ensure they have the relevant license and they are not banned or disqualified.

Ashley

UK Global Insurance

07590635644

 

 

[JasonPeters 0]

I too don’t know how insurance companies work but as well as the NCB, the policy was loaded & his next year’s bill (which I saw) more than doubled to over £8K and that was after he’d pared back cover. Over the next few years it must of cost him a five figure sum, all for someone who walked away financially scott free. click here