Overview:
When categorising vehicle usage, it's crucial to ensure that the classification genuinely represents the vehicle's primary purpose and that their usage ties in with their occupation. Always question and verify information to ensure accuracy and appropriate coverage.
Classifications of Vehicle Usage:
- Carriage of Own Goods: This allows a customer to commute to multiple pre-arranged destinations of work. They can carry any materials or tools they need to complete the their work, as long as it is inline with their occupation and insurer terms. This usage is most common amongst tradespeople.
- Social and Domestics Pleasure (+ Commuting ): Only covers commuting to a single place of work.
- Social and Domestics Pleasure: This usage will only cover the customer for social purposes.
- Haulage: This level of cover is needed when a customer is carrying other peoples goods for hire and moving them from one destination to another. An example here would be a Courier, collecting goods/items on behalf of a client and delivering on to an another location or client. This type of occupation and usage needs to be passed on to our Technical insurance team.
Example:
If a plumber has different job sites, he must select "Carriage of Own Goods" as his vehicle usage. This classification allows a customer to commute to multiple pre-arranged destinations of work and carry any materials or tools they need to complete their work, as long as it is in line with their occupation and insurer terms. This usage is most common amongst tradespeople.
On the other hand, "Social and Domestics Pleasure (+ Commuting)" only covers commuting to a single place of work. Therefore, if a plumber goes to the same job site every time, "Social and Domestics Pleasure (+ Commuting)" is fine.
Key Points to Remember:
- Multiple Commute Locations: If the vehicle is used to commute to multiple work locations, it must be categorized under "Business Use."
- Tradesman Clarification: Even if a tradesman claims they only travel to one work site, their vehicle usage should be classified as "Business Use."
- Van Owners: If someone owns a van and lists their usage as SDP, it's essential to probe further. It's crucial to understand why they possess a van if they're only using it for social, domestic, or pleasure purposes.