10 Common Mistakes in Executive Car Insurance Yes Ensure

10 Common Mistakes in Executive Car Insurance

Executive cars are not just about transporting people in luxury, many of them also involve some level of security.

Here are ten common mistakes made when insuring executive cars:

1. Throwing out the household insurance policy to insure an executive car

Not every insurer will allow you to insure a car if your household insurance doesn’t fully cover it. If you think you can get away with only having the household insurer cover your executive car, think again!

2. Confusion when defining “business”

If you use your car for work purposes (i.e. driving people to meetings or dropping off documents), then it is considered a business use, which means that this need needs to be included in your executive car insurance policy.

3. Forgetting to mention previous accidents or convictions

This is not like insuring a normal car, where you can skip that step and go straight for the quote – if you don’t include this information, it will lead to an under-priced quote (or worse still, the insurer can decline to cover your car).

4. Thinking that comprehensive executive car insurance is enough

Not every executive policy is the same, and you need to make sure that you are covered for all eventualities. The general rule of thumb is that if the event happens rarely (e.g. hail damage), then it’s not worth paying for, but if it happens frequently (e.g. theft), then it’s worth investing in.

5. Listing your driver as an additional driver

As the registered keeper of the car, you are always listed as the main driver, regardless of who actually drives the car more often than not. If you want to be insured as the driver, make sure you state this when you apply for executive car insurance.

6. Not mentioning specialist equipment (e.g. in-car TV)

Specialist equipment like in-car TVs and sound systems should be mentioned in your executive car insurance policy because that is what they cover; many ordinary household insurance policies don’t cover this equipment.

7. Not checking the fine print on your executive car insurance policy

This is a big one, not least because it’s so easy to miss small details in a lengthy document that you probably thought you would never need to read in its entirety. Check all the details of your executive car insurance policy and ensure that they include everything you need. For example, you might assume your policy covers European travel – but check the fine print to ensure it does before setting off on holiday with your family.

8. Using the car for personal use

If any of these events happen when you are using the car for personal reasons, then they will not be covered by executive car insurance. The best way to avoid this issue is to ensure that you only ever drive the car for work purposes, and if you want to take it as a treat at weekends or evenings, then do so on an ordinary household insurance policy.

9. Not checking the size of your excess

A larger excess means a cheaper premium – but be careful, as you can’t escape paying the excess if anything does happen. If you don’t mind putting up with a larger excess, then it might be worth taking out executive car insurance with a higher excess to lower your premium – but just be aware that should anything go wrong, you will have to pay for it yourself.

10. Not knowing the difference between “fronting” and “non-fronting”

Fronting is when you don’t list the actual driver on the policy, but instead put your own details down – this could invalidate your insurance. Non-fronting means that the car is insured in its own name (i.e. registered keeper) but with you listed as the main driver. This is better because it allows you to ensure that your vehicle is safe, while still making sure you are insured when you are using it for work purposes.

What is the difference between business use and personal use?

Business use means that you can insure your car under an executive policy, whereas personal use refers to when you are using the car for non-business related reasons. It’s easy to forget this detail because it’s not something many of us ever think about, but it could invalidate your insurance if you accidentally drive your car for personal use. It’s important to check that you understand the differences here and make sure that all your uses of the car are covered under your executive policy.

What if I use my car for personal use sometimes?

It may seem like a good idea at the time to save money on your executive car insurance by taking out a policy that allows you to drive the car for personal use, but it’s really not worth it in the long run. If anything does happen while you are using your vehicle for non-business purposes, then your insurance company may turn around and refuse to cover any of the costs.

What is “fronting”?

Fronting refers to when someone else (e.g. a family member) is listed as the main driver of a car, but it is not their vehicle. Fronting is basically lying to your insurance company so that you are listed as the main driver rather than the person who actually uses it on a regular basis. This has some big disadvantages, namely that if anything does happen to your car while you are using it for personal reasons (e.g. you take it out for the weekend), then it will not be covered by your executive car insurance, and instead comes under your household insurance policy.

So It Seems

Comment below and tell us your thoughts on what you think are the 10 most common mistakes that people make when they’re getting executive car insurance. Have any of these been a problem for you? What other errors do we need to cover?

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