Is this car insurance clause fair?

By THIS IS MONEY
Updated: 09:03 EST, 15 April 2010

My son age 16 took my car without permission and crashed into a wall.

The car is now a write-off but the insurance company say they will not pay out unless my son is charged with theft of the vehicle. Are they allowed to do this? R.H., Havant, Hampshire

Simon Moon from This is Money replies: You were working away from home when your son decided to go for a joyride in your S-reg Fiat Bravo and hit a wall.

Given the car's age, the cost of repair was greater than the value of the vehicle which was deemed a write-off by your insurers, Broker Direct.

You say there is a clause in your policy that states if there is loss or damage caused by unauthorised use of the vehicle by a family member or someone known to you, that person must be charged before the insurance company will accept liability.

Your son was subsequently charged by the police with aggravated taking without the owner's consent, driving without a licence and insurance.

However, when you next spoke to Broker Direct you were told they would pay up only if your son was charged with theft.

Joyriders are not charged with theft because it is not their intention to permanently deprive the owner of the vehicle. This is why we have the separate offence of 'taking without the owner's consent' which gives us the slang term 'twocking'.

I spoke to Broker Direct who defended their stance by claiming the punishment likely to be imposed by a court was not sufficient to deter families from turning a blind eye to this kind of behaviour. I should add there is no suggestion you were guilty of any kind of collusion.

Broker Direct refuse to budge and you have now decided to take your case to the Financial Ombudsman Service who will check to see if the terms and conditions of your insurance policy are fair and reasonable.

My guess is that they are likely to find in your favour, but it will be some weeks or even months before you get a verdict.

I look forward to hearing how you get on.