Wednesday, August 27, 2014

Letter To Editor, Insurance Excess Rental Contracts.

Dear Jim,
I rent my cab from a garage fleet owner and recently discovered that there is a commercial hire agreement which drivers are asked to sign.

I can understand this is to protect the fleet owner from the responsibility of parking tickets  etc.

However it also requires the driver to pay the garage £250 if the driver is found to have partially be responsible for an accident.

I was wondering if this practice is widespread amongst fleet owners and the legality of, though insured by the garage the driver is still partly responsible for accidents
Mick Smith

Editor reply:
Hi Mick.
The practise of making drivers cough up the insurance excess is a relatively new practise and has become more wide spread as policy excess has grown. Some insurance companies are requiring £300 to £400. I myself have a £350 excess. If I were to rent my TX4 to a day driver, I would have to insist that he/she would be responsible for the excess should they have an accident that was deemed their fault. When I shared a cab with a friend, we had a gentleman's agreement, that who ever had an accident was also liable for the (at that time) £200 excess. 

Would assume that garages are quite within their rights to ask drivers to sign contact.


Anonymous said...

mick shop around mate

Anonymous said...

Phone the Insurance Times to get clarification. 020-7618-3456

Mick Smith said...

Thank you for your replied