Are Courtesy Cars Insured?

That is dependent on your insurance policy. Some insurance packages provide courtesy cars as a regular feature. It’s an optional feature on others. However, if your coverage is totally comprehensive, you’re more likely to be covered.

Typically, courtesy automobiles are not covered by third-party, or third-party, fire and theft insurance. However, it all depends on your policies — some may, so it’s always worth double-checking.

Do I need to insure a courtesy car?

Driving a courtesy car still necessitates insurance. It’s critical to make sure you’re adequately covered if you’re obtaining a courtesy automobile that isn’t provided through your insurance. It is unlawful to drive a car without insurance, so you may need to purchase additional coverage.

What happens if you have an accident in a courtesy car?

What happens if a courtesy automobile is involved in an accident? If you collide with a courtesy car, the courtesy car’s insurance will pay out. Another courtesy car should be available to you.

How long can you have a courtesy car for?

Is there a limit to how long I may keep a courtesy car? Typically, a courtesy automobile is only provided while repairs are being done or until a write-off settlement has been reached. However, there will be a restriction; most policies have a maximum of 14 or 21 consecutive days, so check the conditions of your insurance to be sure.

Can you get temporary car insurance on a courtesy car?

Temporary vehicle insurance is an excellent approach to guarantee a specific level of auto insurance while driving a courtesy car because it is not only quick, flexible, and economical.

Regardless of why you have the courtesy car, courtesy car insurance includes full coverage as standard.

You can acquire a policy for as long as you need it (from 1 hour to 28 days) while your car is being fixed or until you buy a new vehicle, and if you need it for longer than that, you can simply buy a new insurance.

There are no long-term commitments, and you don’t pay for insurance you don’t need because you can choose the period of your coverage.

Is courtesy car free?

A courtesy car is an automobile that is offered free of charge by a repairer or dealership and is most likely what is available at the moment.

AX provides a temporary replacement hire vehicle at a cost, but we pay the expenses in advance (thus the term “credit hire”) and subsequently recoup the costs from the at-fault party’s insurer.

Also, learn about credit hire.

For this reason, all of our FAQs and documentation refer to “rental vehicles” rather than courtesy cars or automobiles.

What is a courtesy car?

There are a number of things that need to be arranged if you need to make a claim on your vehicle insurance, whether you’ve been in an accident or your car has been damaged.

We think your major concern would be how you’ll move around while your car is being repaired, assuming everyone is okay and your automobile is the only thing that has been dented.

We’ve answered some of your most pressing questions to give you an idea of what to expect if you require a courtesy car.

Do courtesy cars have trackers?

To summarize, the vast majority of suppliers will track their vehicles. However, as long as you follow the law and the rental agreement, this shouldn’t be an issue for you. It is only in place to protect the supplier, but it may also protect you in rare instances.

What is the difference between courtesy car and hire car?

A courtesy car is included as standard with a 1st Central comprehensive policy. If your automobile is being fixed by one of our certified repairers (depending to availability) after a claim, you will be provided with a courtesy car.

You will not be provided with a courtesy car if your automobile is a write-off (i.e., if your car is considered beyond economical repair due to an accident or theft).

For a small additional fee, you can add Hire Car Cover to your package, which will cover you if your car is written off or stolen. View our HireCar Cover page for more information.

What documents do I need for a courtesy car?

When a customer came to drop off his vehicle and pick up the Courtesy Car, he forgot to bring his driver’s license with him. His insurance company, which was covering the Courtesy Car, agreed it was fine to let the car go.

Is it okay if we don’t see our customer’s license before allowing them to utilize a Courtesy Car?

There are various reasons why you should always ask to see a customer’s driver’s license before providing one of your Courtesy Cars to them.

The Photo ID driver’s license is an accepted technique of verifying the identity of the person operating your car.

As a result, you must verify the person’s identity before granting them access to a valued item, such as a Courtesy Car.

When fraudsters gain access to enough information about a person’s identification (such as their name, date of birth, current or past residences), they commit identity theft. When a stolen identity is utilized in a criminal activity to obtain goods or services by deception, such as your Courtesy Car, identity fraud happens.

To safeguard your business, make sure you inspect and copy the customer’s driver’s license, making sure they have the correct category of license for the vehicle you’re providing.

You confirm that the Insurance Company is responsible for insuring the Courtesy Car, and that they have advised that you can release the vehicle without verifying the driver’s license under the situation described. As you may be aware, the insurance company and the Policyholder have a contract in which the Policyholder makes a number of disclosures that the insurance company believes are accurate, and the insurance company agrees to provide insurance on that basis.

If you release a Courtesy Car and it is later discovered, after an accident in your vehicle, that the customer has been banned from driving and is not legally entitled to drive, the Insurance Company may claim that the Policyholder has broken the insurance contract and will most likely refuse to honor the claim.

The Insurance Company would allege that the Policyholder violated a policy condition, prompting you to either file a claim on your own insurance or try to persuade the Insurance Company to compensate you for your loss.

If you decide to release a Courtesy Car on the Insurance Company’s instruction, you should receive a very specific communication from the Insurance Company confirming that the Policyholder is permitted to drive and that any claim resulting from your supplying the Courtesy Car would be honored.

If you fail to treat someone to whom you owe a duty of care with care and that person is damaged as a result of your carelessness, they may be able to file a negligence claim against you.

If you negligently offer a vehicle to someone who is not legally permitted to drive and that vehicle causes injury or loss to another person, the affected party is likely to file a claim against you for negligently supplying a vehicle to someone who is not legally permitted to drive.

Your vehicle’s driver is unlikely to be insured, and unless he possesses assets that can be seized through a court order, you and your company are likely to be the main focus of a claim.

In addition, it is great practice to confirm that the customer is aware of the Courtesy Car’s controls before releasing the car.

If a client experiences an accident as a consequence of the vehicle’unfamiliar’ controls, and you failed to explain the controls, the customer, or the person who suffers loss as a result of the accident, may file a negligence action against you.

You should include a statement on the Courtesy Car form that certifies the customer has been shown the controls.

You will almost certainly need information from the Policyholder’s Driver License in order to correctly complete your Courtesy Car Form.

This information is required in order to transfer liability for speeding and parking penalties to the consumer directly. You will be accountable for fines if you do not record this information on the Courtesy Car form. You can try to recoup these costs from the customer, but it’s much easier if the duty is transferred to them.

Following a finding that a garage was not obliged to pay a parking fee imposed on a courtesy car since the customer had signed a loancar indemnity form that complied with road traffic legislation, the London Parking Adjudicator addressed this point in early 2001.

Check your Courtesy Car Form to make sure it complies with traffic laws and that your staff are filling it out completely. The form may have all of the required information boxes, but if these boxes are left blank, it will not be accepted.

The customer must sign the agreement, which must include specific elements such as:

  • the vehicle’s registration number and make (and any vehicle substituted during the period of the agreement),

A declaration of liability signed by the customer recognizing their liability for any penalty charge notice incurred throughout the term of the hire agreement is also required.

In response to the initial question, you can provide a vehicle without seeing the customer’s driver’s license, but you’re exposing yourself and your company to a danger that could be avoided. As a result, it is recommended that you do not provide a Courtesy Car until you have reviewed and copied the customer’s driver’s license.

Who pays for the courtesy car?

If you have comprehensive auto insurance, you should be provided with a courtesy vehicle at no additional cost. The only thing you’ll have to pay for is gas because it’ll be insured for you to drive.

A courtesy car is not always offered free of charge to individuals who have third-party auto insurance, but you may be able to pay a modest cost to have one sent to you for a short period of time following an accident.