Was I covered on my commute?

In May I was riding to work when I had an accident with a car on a roundabout. I agreed to accept 50% of the blame as we were equally at fault for the accident. But my insurer is refusing to pay the other driver for the damage to her car. They say that my insurance policy was third-party and social only so it didn’t cover commuting to work. My insurer is saying I have to pay the other driver’s compensation as I misled them. Can they do this?

Dan Glover, by e-mail

Answer

Motor insurance policies are policies of good faith meaning both parties in the contract have to disclose the correct required information needed to create a policy.

If it is the case that you were commuting on a non-commuting policy then your insurer is likely to deal with your opponent’s claim rather than cancelling your policy as if it never existed at all which in very serious cases it can – for example not disclosing a drink drive offence, which, had it been disclosed, would have led to them declining to offer insurance at all.

In your case the difference would likely have been a higher insurance premium had you disclosed that you intended to commute rather than your insurer not offering cover.

Your insurer should compensate the other driver but your insurer is within its rights to make you repay them for your share (50%) of the losses of the car driver.