Norwich Union Direct Car Insurance - BE AWARE
Posted by: Martin D on 06 October 2005
Asimple change to the small print at one insurer could be about to spark the biggest overhaul in motoring cover for decades.
Motorists with their own policy have been able to drive any car with third party protection for years. But Norwich Union Direct is set to become the first firm to scrap the rule.
In the industry, the clause is known as Driving Other Cars (DOC), and was designed for emergencies, as long as you had the owner's permission. But Norwich Union says policyholders are using it to cheat the system.
A spokesman told Auto Express: "This is an important step in reducing uninsured driving, and it's the right thing to do. Anyone who drives in this country should be concerned at how DOC is being abused."
He claimed people are getting insurance for a cheap car - with low-cost premiums - then driving something more expensive most of the time. They're banking on not causing a crash, but it's a way of cutting annual costs. The spokesman revealed a case of a customer insuring a Ford Fiesta with comprehensive cover, but mostly using a Porsche. "We'll make people aware that the cover will no longer exist," he said. The change will apply to new policies from January - existing customers won't be affected unless they renew their insurance.
A spokesman for the Association of British Insurers told us: "There are no moves to axe DOC across the board yet, but it's something the industry is discussing." Cornhill Direct, AXA, Sun Alliance and More Than are believed to be considering the change.
The idea of cancelling DOC has police support, but some other insurers claim it will cause confusion, leaving thousands of motorists unaware they're breaking the law.
Meanwhile, not saying sorry after a crash is costing UK motorists at least £28million a year, according to a new survey. Norwich Union believes failure to apologise following an accident makes the other party exaggerate injuries or damage in claims. Nine out of 10 respondents revealed they want to say sorry, but nearly half think doing so is an admission of guilt, harming their case.
Motorists with their own policy have been able to drive any car with third party protection for years. But Norwich Union Direct is set to become the first firm to scrap the rule.
In the industry, the clause is known as Driving Other Cars (DOC), and was designed for emergencies, as long as you had the owner's permission. But Norwich Union says policyholders are using it to cheat the system.
A spokesman told Auto Express: "This is an important step in reducing uninsured driving, and it's the right thing to do. Anyone who drives in this country should be concerned at how DOC is being abused."
He claimed people are getting insurance for a cheap car - with low-cost premiums - then driving something more expensive most of the time. They're banking on not causing a crash, but it's a way of cutting annual costs. The spokesman revealed a case of a customer insuring a Ford Fiesta with comprehensive cover, but mostly using a Porsche. "We'll make people aware that the cover will no longer exist," he said. The change will apply to new policies from January - existing customers won't be affected unless they renew their insurance.
A spokesman for the Association of British Insurers told us: "There are no moves to axe DOC across the board yet, but it's something the industry is discussing." Cornhill Direct, AXA, Sun Alliance and More Than are believed to be considering the change.
The idea of cancelling DOC has police support, but some other insurers claim it will cause confusion, leaving thousands of motorists unaware they're breaking the law.
Meanwhile, not saying sorry after a crash is costing UK motorists at least £28million a year, according to a new survey. Norwich Union believes failure to apologise following an accident makes the other party exaggerate injuries or damage in claims. Nine out of 10 respondents revealed they want to say sorry, but nearly half think doing so is an admission of guilt, harming their case.