Be careful giving your car to that friend or family member not disclosed as a “Regular Driver”!

We have all been in the scenario with a friend or family member who is desperately in need of transport – lending them a vehicle for a drive! But what has to be disclosed to our car insurance company and would we be covered in the event of damage from a road crash? 

We raised the following questions with MiWay [as well as a few other insurers]:

1. Do you perhaps have some guidance on the criteria to be used to identify the regular driver as disclosed by the insured client?
   Insurance companies view the regular driver of a car as the person who drives it most often in a given period, usually a month.  This can be tricky if your family has one car that is shared between spouses or between a parent and child, but it should almost always be clear who drives the car regularly. If you’re in any doubt, tell your insurer about any individuals who drive the car on a regular basis. The risk profile of the regular driver is used to determine the premium to be paid.
2. Would a spouse automatically be regarded as a regular driver of a vehicle?
   No, not automatically. The policyholder would need to specify who the regular driver of a vehicle is.
3. Can you give us an example of the policy wording [wording in the policy document] where disclosure is made of regular drivers insured under the policy?
   “The regular driver is the person who drives the vehicle most often in any given monthly period.”
4. How often would a non-disclosed driver have to be driving a vehicle to be regarded as someone who had to be disclosed as a regular driver?
   The non-disclosed driver would need to be disclosed as a regular driver if they were to drive the insured vehicle more than any other driver in the given (monthly) period.
5. If.eg. a family member from Namibia comes to Cape Town for the December holidays and is given a second family car to drive around with  – would this have had to be disclosed to the insurance company?
   December is 31 days. If the family member was the sole driver of the vehicle for 15 or more days, then yes, the visiting family member’s driving circumstances would need to be disclosed to the insurance company in order to enjoy full cover.
6. Is it only the frequency of driving that matters or would it also be a difference in driving experience [ a young or elderly driver]?
   In terms of the regular driver, it is most often the frequency which matters. The risk profile (driving experience, previous incidents, etc.) of the regular driver is used to determine the premium to be paid.

Outsurance uses the following definition of a regular driver:

King Price offered the following advice to clients:

Important Advice:

• Clients may allow others to drive their vehicle provided the other driver has a valid driver’s licence and meets the requirements of cover.
• Make sure you read your policy documents so you are aware of all additional excesses.
• Remember if the person drives more often in one month that person should be noted as the regular driver.
• Only allow drivers who would exercise caution in driving your insured vehicle to drive your car.
• If the non-disclosed driver is reckless, you may be liable to pay an additional excess or your claim may even be rejected.
• When not certain – contact your car insurer – Rather Safe than Sorry!