This week's question

This week's question deals with the status of a motor trader when he allows a customer use of a courtesy car

Question: If a motor dealer allows a customer the use of a courtesy car while his own is undergoing repair or a service, and includes insurance cover under the dealer's own motor trade policy, would this be seen by the FSA as a regulated activity?

The FSA says: The answer is "possibly". If the motor dealer is the policyholder and the customers do not obtain rights under the policy when the driver takes the courtesy car, then this is likely to fall outside the scope of regulation.

But each dealer will need to consider the terms of its own policy and the nature of the rights granted (if any) to the customer under the terms of the policy.