Motor Vehicle Insurance - Sale of the Insured Vehicle

(Dodson v Peter H Dodson Insurance Services, December 2000 (to be reported in [2001] Lloyd’s Rep IR))

Motor insurance policies in their most basic form cover the named driver of an identified vehicle. Both elements may be extended: the insurance may cover other named individuals or individuals driving with the assured’s consent; and the insurance may also cover the named driver against liability incurred while driving any other vehicle. The decision of the Court of Appeal in Dodson v Peter H Dodson Insurance Services, December 2000 (to be reported in [2001] Lloyd’s Rep IR) , was concerned with a policy which purported to insure the assured named driver against liability while driving his own vehicle and also any other vehicle. The question was whether that cover continued to apply after the assured had sold the insured vehicle.