Gap insurance and your fully comprehensive motor policy

Lending your car out? Third party, fire and theft insurance is not enough.


Lending Car Third Party Insurance

You’ve got gap insurance so you’ve got fully comprehensive motor insurance, right? Yes of course you have. That vehicle is your pride and joy. You want it fully covered - and you want your finance covered or the purchase price or a full ‘back on the road’ package so you’re not going to leave it to the vagaries of mere third party, fire and theft insurance.

Unfortunately, sometimes people  have a lapse in concentration and don’t realise that it’s possible for just that to happen. 

If your mate says ‘can I have a go in your car’ or ‘don’t worry I’ll pick you up from the station in your car’ think twice.

Just because they say ‘sure I’ve got insurance to drive other people’s cars with driver permission’ doesn’t mean that it’s a good idea. It’s legal, yes. But not necessarily smart - driving on their own insurance with driver permission is only ever third party fire and theft. If that mate then wraps the car around a lamp post, the car is not fully comprehensively insured. Worse than that, the gap insurance is also invalidated.

Gap insurance covers the policy holder and any named drivers. It does not cover someone else driving the car on their own insurance policy. That is legal but it’s not fully comprehensive cover.

Make sure anyone that drives your car is a named driver. And if in doubt, don’t do it.


By Beate Kubitz at 17 Apr 2019, 00:00 AM