Question about car insurance

dave oc

Will Insurance companies pay out compensation for a claim if the policy holder is on a porvisional license and not accompanied by a person with a full license when the accident occured?

Here's my situation. Im looking into getting my first car and I have a provisional license. My license expires in May and so I will be on my second thereafter. I am hoping to get a car and insurance in the coming months, it might even be after May and I wont have to worry about this, but I would like to know anyway incase I find a car I like before then.

I know alot/ most people on their first provisional license dont drive with someone in the car, but there's not much point in getting insurance and if I do have an accident then not being covered.

Thanks
D

Seth Brundle

Yes you are fully covered but if the incident is your fault they reserve the right to recover their costs afterwards. Unlikely though!

DonJose

KBannon, do you work in the insurance industry, care to back up this claim?

I received the following email from the Traffic Corp in regards to provisional licence holders, driving unaccompanied.

"Thank-you for your email. You can be assured that An Garda Síochána have prosecuted provisional licence holders for driving unaccompanied. The offence is in effect driving without a driving licence."

maidhc

DonJose wrote:

KBannon, do you work in the insurance industry, care to back up this claim?

You don't need to work in the insurance industry to fully understand the principle of utmost good faith.

Insurance companies in practice cover provisional drivers, but if they wanted they could get awfully awkward.

dave oc

Thanks for the replies.

Anyone else have a more definitive answer on this....?

Seth Brundle

I believe that you got the definitive answer!

OldmanMondeo

Dave6195 wrote:

Anyone else have a more definitive answer on this....?

There is no such thing when it comes to the Irish Insurance Industry. It would really depend on the insurance company and their terms. They could decide not to pay out on a claim because you only hold a 1st provo licence, but then again they might if the claim is small. Remember you are dealing with a industry that is near impossible to understand.

Hopefully you will never need to make a claim.

Eoin

DonJose wrote:

KBannon, do you work in the insurance industry, care to back up this claim?

I received the following email from the Traffic Corp in regards to provisional licence holders, driving unaccompanied.

"Thank-you for your email. You can be assured that An Garda Síochána have prosecuted provisional licence holders for driving unaccompanied. The offence is in effect driving without a driving licence."

I don't think that contradicts what KBannon said though. You may be prosecuted for that, but does that automatically mean your insurance won't pay out?

setanta5

I spoke to an insurance company rep before about this. His answer was pretty much as was stated above...they would pay out and you are essentially insured, but that they have the right to seek costs later were the claim to be huge or if it were proved you acted criminally (Drunk, Speeding)

Remember the insurance industry on average makes money on every policy, even provisional licence holders. And also, were they to claim you were uninsured, there is a central insurance fund for people who are hit by uninsured drivers to claim from, and all insurance companies have to pay into that every year to cover the costs. So they would bw funding it one way or another.

As for what the DonJose said above, the traffic corps is correct it is essentially driving without a licence, but you can technically be insured without a licence. If your licence were to lapse and you had not renewed it, your insurance company would still cover you, although they may seek costs from you afterwards as above.

If you were arrested the offence would be driving without a licence but they could not charge you for not having insurance.

zilog_jones

I asked someone in Hibernian about this issue, and she said it's a matter for the guards.

Fanboy

Yeah, I work in the claims department for one of the big ones.

It's not something that really makes any odds to the insurance company. It's up to the guards to do something about it. However, if the guards decide to do you, and start quoting the Road Traffic Act it could get a bit shakey then. In my experience, the guards will only do you for this if you have done something else wrong, like drunk driving, obvious speeding, hit a pedestrian etc. If its a normal tip, they will take details and go about their business.

If you are prosecuted for any offence against the Road Traffic act, your insurance will not pay out on your own damages if you are comp. They have to pay out to the third party regardless.

dudara

Fanboy wrote:

They have to pay out to the third party regardless.

That's my understanding exactly. They will cover the third party, but not the comp. And they reserve the right to recover costs from you.

Techinically driving unaccompanied violates the terms of your license (excluding the second), thus rendering it null and void.

maidhc

If you do not comply with every last term of an insurance contract the company need not pay out. This can include failing to inform them if you change address during the period of cover, or putting a new stereo in your car. If you crash your car because of excessive speed, they can refuse to pay out because of the €400 stereo you never declared.

In practice insurance companies are not quite so sticky, but i would imagine if you were the cause of carnage on the m50 with damages running into the millions, and if it turned out you owned a string of investment properties, they just might call in the lawyers to see what they could get from you.

The third party will be always compensated, either through the insurer, or through the MIBI.

The issue of the Gardai is completely different.

Skyuser

When I had my provisonal a couple of years back. AXA said that I would be covered if I was driving alone.