INSURERS DIFFER OVER WHETHER TO COVER PEOPLE DRIVING OTHER CARS
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| Article date: 06/10/2005 : 17:30:15 |
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Norwich Union has decided to stop its driving other cars (DOC) cover with its motor insurance, but the AA has said it has no plans to scrap it.
The third party insurance principle was initially developed for emergencies, but there has been concern that it is being abused and Norwich Union believes enough is enough.
The worry is that people can get cheap insurance on a low risk car, then still be covered when they drive a higher priced and more powerful car, as long as they have the owner's permission.
Therefore, from January next year, DOC cover will not be available in Norwich Union's insurance policy.
However the AA announced that it will not be following suit as it thinks there will be more confusion amongst honest drivers who think they are still covered.
It also believes the removal of the DOC cover would be totally unfair on drivers who need to drive someone else's car in an emergency situation.
The AA states the industry needs to think carefully about the issue and it did say that a possible solution was to include a removal clause for anyone who is caught abusing the privilege.
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