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The Ombudsman for Short-term Insurance says consumers have a duty to disclose relevant information and any material change in circumstances, their insurers to avoid the possibility of having rejected your application or the policy canceled.

Consumers should be aware of the difference between the driver of a "regular" and a designated driver in terms of an insurance policy is a clear difference. Most car insurance policies are underwritten on the basis of any of these descriptions and those concepts are used to evaluate the risk associated with insurance for a particular vehicle and the premium to charge. The identity and profile the driver of a motor vehicle is obviously an important factor in determining the risk and premium.

The policies are underwritten on a "regular" driver usually allow the insured to use their discretion to permit others to drive the vehicle. These controllers can be anyone with a valid driver's license, without support. The normal driver would be the person who uses the vehicle more frequently and more than any other driver. The regular driver may not necessarily be the vehicle owner. The secondary controller can not be a person who drives the vehicle on a more regular driver "regular". It is very important for consumers to correctly identify the regular driver on his policy in cases where more than one person driving a motor vehicle, and that to do so could result in the rejection of a claim based on misrepresentation or nondisclosure and the policy may be declared void from inception.

A designated driver policy, on the contrary, it only covers people who are actually named and recorded as a designated driver in the insurance policy. Anyone who has not been named and registered as a designated driver in the policy schedule not be covered in the event of a claim.

The ombudsman said that consumers should pay attention to the fact that information is furnished, if a vehicle is properly secured to an insurer or incorrect on either a regular driver or a designated driver, which can result in a policy void from its inception, or the insurance they do not have the obligation to compensate for loss or damage.

If the "regular driver" change or place of residence of the changes that this may affect the insurer's risk and for this reason should be notified immediately that change takes place. It is logical if we consider the difference between a father who lives in a small town that seen as the controller of "regular", according to policy, when in reality the car is driven on a daily basis by a young university student who lives in central Cape Town. Exposure to risk is much higher and the premium is adjusted accordingly. If the insurer is not aware of the change when it occurs and the opportunity to reassess the risk, then the insurance company can not be held responsible in case of disaster.

If consumers are not in any doubt as to whether your vehicle is insured or not, should seek professional advice from a broker, insurance consultant or attorney before making policy. This avoid many problems that could arise at a later stage.

About the Author:

James Conradie is a freelance writer and he has a lot of experience on the
Car Insurance
industry. Visit

http://getinsurance.co.za/car/
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Article Source: ArticlesBase.com – Difference Between Regular and Nominated Driver in Car Insurance Context