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We are purchasing a new car on a PCP finance deal. The car and finance will be in my name as my wife only works part time but my wife will be the main driver. I have got insurance quotes for this situation no problem and it must be a fairly common set up. Insurance companies seem confused between who is the owner and who is the keeper. In this case the owner will be the finance company until the finance is settled and I am the registered keeper. Some insurance companies don't ask who the registered owner is - only who the keeper is. And some seem confused about the difference and say if you are on the V5C then you must be the owner
Anyone got any experiences on insurance companies who actually understand the difference? And therefore can quote me correctly without fear of some sort of loophole being used. Thanks
you are owner and keeper
If it's on PCP, aren't you the owner? We've had PCP cars in the past but we've always been the registered owners and keepers. The finance company doesn't own the car, they've just given you the money to own it (and obvs will be having it back and anything else to cover interest if you don't pay up).
Insurance companies seem confused between who is the owner and who is the keeper
No it's you getting confused.
http://www.moneysavingexpert.com/car-finance/personal-contract-purchase
See above. MSE is pretty good on these things. The first con says you aren't the legal owner of the vehicle until all payments are settled.
I have just gone through this. A lease hire agreement in my case, with the lease company being registered owner and keeper. Check with the PCP company to clarify who is the registered keeper. I also have another car on a work based credit agreement, but I am registered owner and keeper on that. Most insurance companies seem to understand. Aviva worked out cheapest for me, AXA added to the premium as I wasn't the registered keeper. A few (I think it was the Admiral group) had a statement that you had to own the car, although when I rang them to check they said it would be fine...
Also worth checking the PCP terms, on my new lease agreement it states insurance must have a maximum excess of £250. Never seen that before.
I bet there are lots of lease and PCP cars on the road that haven't stated the right owner and keeper to the insurance company.
You'll have to forgive me for not reading the link - because for four cars on PCP and one van on HP, I have been the registered owner and keeper of the vehicle. All insurance, TAX and MOT have been my responsibility. I would assume tha because there is finance attached to the vehicle that they can come and take it from you if you decide not to pay - maybe that's where you're getting confused? What does it say on the log book (or the V79x56c or whatever it's called these days)?
http://www.parkers.co.uk/cars/finance/car-finance-advice/pcp-and-insurance/
More info here from parkers.
Registered keeper and registered owner do not have to be the same person.
Actually just checked and I went with Hastings Direct and not Aviva, insurance documents clearly say that I am not the registered owner or keeper.
Having had a total loss on a PCP car (due to theft) I would say that it is worth making sure all the insurance details are 100% accurate and don't just assume. Also don't forget gap insurance.
My insurance policy says I can drive any other car and be covered third party only, as long as I have the permission of the car's owner.
Should this be a mate's car on PCP then that mate can't give me permission to drive it and I'd not be insured?
Dmorts - you would be insured for 3rd party liability ie if you hit someone else their car would be covered and their expensive hospital bill would be covered, but not your mates car etc
All insurers understand pcp, hp etc these days...
The first con says you aren't the legal owner of the vehicle until all payments are settled.
Thats not all it says though...
You won’t own the car during the contract period ([b]though this is the same for almost all dealer finance agreements[/b]) – and will only own it at the end if you pay the balloon payment.
Dmorts - you would be insured for 3rd party liability ie if you hit someone else their car would be covered and their expensive hospital bill would be covered, but not your mates car etc
You didn't get my point, the detail of my policy wording is:
I can drive any other car and be covered third party only, [b]as long as I have the permission of the car's owner[/b].
So I as I interpret that, my mate can't give me permission as he's not the owner therefore my insurance won't cover me to drive it..
Privilege insured my lease car with me as the keeper and VAG Financial as the owner.
@dmorts- 'owner' will be defined in the policy wording which may clarify the position. In any event an insurer would struggle to repudiate a claim on the basis that the technical owner of the vehicle did not give permission but the de facto owner did.
Under CIDRA etc an interpretation of 'owner' that gave lesser cover for a pcp vehicle than that of one on another form of finance would have to be specifically drawn to the attention of the policyholder at quote stage.
Privilege insured my lease car with me as the keeper and VAG Financial as the owner.
Likewise, although I'm not even the registered keeper and I've never even seen the V5. Same with previous lease car.
IME, online quotations struggle with this but I usually get a quote as if I'm both the owner and registered keeper then call up and clarify the situation. Rarely does it make any difference.
I think the answer to my query is
Pcp/hire purchase - no issues, I'd be insured
Lease car - I'd not be insured