Class of use complexities risk leaving customers uninsured, warns Biba

Biba is calling on insurers to simplify motor insurance clasifications amid fears the present system could leave customers uninsured.

The organisation wants insurers to offer some form of class 3 cover - business use - as a standard to all customers.

Biba technical services manager Graeme Trudgill said: "This is way too confusing for the consumer. For example, what is a commuter, someone who drives to work or someone who drives to the railway station? Some call centres do not even ask the question, leaving people technically uninsured."

The call was backed up by the AA, which is currently rationalising its list of well over 20 classes of use.

A spokesman for the AA said: "There is general confusion in the market with all sorts of variations between broker and insurer.

"We think there are certain circumstances where a car is put to a use that is not covered by the policy."

Biba will be writing to the ABI and its partner insurers to propose the new system giving class 3 cover to all private car policyholders.

Trudgill said: "What we are saying is that if all customers were given class 3 they would be less likely to fall into a loophole. We want this to be black and white, not misleading."