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New FCA Rules on Sale of Add On Products

The Financial Conduct Authority (FCA) has introduced new rules and guidance in relation to the sale of ‘Add on’ products to consumers and businesses.

This affects all new policies or policy renewals, whether sold directly by us or via one of our sub-agents, with an effective/renewal date of 1st April 2016 onwards and relates to either:

  • Optional additional extras (i.e. covers chosen outside the core/standard policy cover available, such as protected NCD);


  • Optional products (known as Add-on’s) which relate to a product that you may have chosen to purchase, that does not form part of your primary policy (e.g. Motor Legal Solutions).

In future anyone involved in arranging ‘Add on’ products alongside a core/standard/primary policy will need to make sure that you chose the cover or service offered via an ‘opt-in’ method rather than an ‘opt-out’.

We are currently taking this opportunity to update our letters and processes to ensure that we continue to be clear about those products or services you have purchased, and what options are available to you.

How might this affect me now?

If your policy has an effective/renewal date of 1st April 2016 onwards you may have already purchased cover for optional additional extras/ optional products (Add-on’s).

The following covers are considered as ‘Optional Additional Extras’ in relation to the Motor Trade insurance we sell.

  • Protected No Claims Bonus – protecting the bonus in the event of a ‘fault’ accident;

  • Additional Business Use – providing cover for business use other than motor trade purposes;

  • Vehicles in Transit cover – covering damage to vehicles whilst being towed or carried on a car transporter by the policyholder;

  • Accompanied Demonstration Use – cover whilst a stock vehicle is being driven for test purposes whilst accompanied by the policyholder or a named driver with motor trade use;

  • Vehicles at premises – covering vehicles kept at business premises;

The following cover is considered as an ‘Optional Product’ (an Add-on) in relation to the Motor Trade insurance we sell

  • Uninsured Loss Recovery – referred to as 'Motor Legal Solutions' in your documents and providing assistance in the event of a non-fault accident.

How do you know what cover you have?

The policy documents we send out will evidence the discussion we had with you about your insurance requirements. The Certificate (Additional Business Use) and Policy Schedule (All other ‘Add-ons’) explains whether or not you have selected any optional additional extra covers or products.

We have always advised you to check your documents carefully upon receipt, to ensure you have the cover you require. We would like to take this opportunity to remind you to check the cover provided, in particular in relation to any optional additional extras or products purchased. Our objective is to ensure you have exactly the cover you expect and require.

If you are uncertain whether the cover you have reflects your current business requirements, or you are concerned you don’t have cover for some of the risks mentioned above, please contact us urgently so we can discuss this with you. You can call our Customer Service team between 9am and 6pm Monday – Thursday and 9am – 5.30pm on Fridays.

Road Runner is a trading name of Aston Scott Ltd. Authorised and regulated by the Financial Conduct Authority (Reg No. 308048). For your protection, telephone calls may be recorded or monitored.

Copyright © Aston Scott Ltd 2015. All rights reserved. Road Runner, 28 Dingwall Road, Croydon, CR0 2NH. Tel: 0330 822 0468

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