Carrying passenger breaches insurance cover…

A driver on a restricted licence lost control at a roundabout and crashed into another vehicle.  At the time of the accident the driver was carrying a passenger (his girlfriend) and did not have a fully licenced supervisor in control of the vehicle.  This was in breach of his restricted driver’s licence. This was therefore also a breach of the insurance policy, because there was no cover for any loss, damage or liability if the vehicle was being driven by anyone who was breaching a condition of their driver’s licence.

It was held that the presence of the driver’s girlfriend in the car was a relevant factor in the accident. This was because the Police believed that the driver may have been showing off and was going too fast and those factors would have contributed to the accident. 

In addition if a fully licenced driver had been supervising, then they would have told the driver to slow down in the wet conditions entering the roundabout.  Both those factors therefore meant that their breach of the licence conditions was material to the accident. There was therefore no insurance for the driver’s vehicle or to cover the costs of damage to the vehicle they hit.

Possibly the most expensive night out with a girlfriend that the driver is ever likely to have.

Alan Knowsley

Insurance Lawyer
Wellington