Car Insurance Question
Discussion
This seems a bit of a grey area, but someone here might actually know (rather than guessing).
I've bought a new car (not leased, purchased outright) and have put this through my company ABC Ltd. The V5 shows ABC Ltd as the registered keeper at 123 Main Street (my home address).
It is insured by, and for, me (as the policyholder using my name, not the company name) with the same address - 123 Main Street. I am the sole owner of ABC Ltd.
My accountant says this is fine, but my Spidey Senses are not sure. I have obviously given myself permission to drive the car and my policy says 'the Policyholder may also drive with the owner's permission a motorcar not owned by the Policyholder'.
Am I over-thinking this in my Covid boredom?
Thanks
I've bought a new car (not leased, purchased outright) and have put this through my company ABC Ltd. The V5 shows ABC Ltd as the registered keeper at 123 Main Street (my home address).
It is insured by, and for, me (as the policyholder using my name, not the company name) with the same address - 123 Main Street. I am the sole owner of ABC Ltd.
My accountant says this is fine, but my Spidey Senses are not sure. I have obviously given myself permission to drive the car and my policy says 'the Policyholder may also drive with the owner's permission a motorcar not owned by the Policyholder'.
Am I over-thinking this in my Covid boredom?
Thanks
Only your insurers can tell you.
Whenever I've insured my cars they've always asked "are you the registered keeper". Were you asked & did you answer no?
But, deffo double check with your insurer.
If the car is put through company, why not insurance? Would that not have been more tax efficient? (Since the BIK you are paying would include the insurance)
Or...am I misunderstanding?
Whenever I've insured my cars they've always asked "are you the registered keeper". Were you asked & did you answer no?
But, deffo double check with your insurer.
If the car is put through company, why not insurance? Would that not have been more tax efficient? (Since the BIK you are paying would include the insurance)
Or...am I misunderstanding?
Why have you done such a thing? You have no insurable interest in the car. The insurer probably only covers you third party when driving someone else's car. The company should insure the car and you should be a named driver. If a business expense the premium reduces the company's taxable profits. If not a business expense why involve the company?
2 sMoKiN bArReLs said:
If the car is put through company, why not insurance? Would that not have been more tax efficient? (Since the BIK you are paying would include the insurance)
I will probably claim the cost of insurance through the company when I come to do the accounts. It's an EV, so there's no BIK.I will check with Direct Line tomorrow.
NDA said:
2 sMoKiN bArReLs said:
If the car is put through company, why not insurance? Would that not have been more tax efficient? (Since the BIK you are paying would include the insurance)
I will probably claim the cost of insurance through the company when I come to do the accounts. It's an EV, so there's no BIK.I will check with Direct Line tomorrow.
Breadvan72 said:
Why have you done such a thing? You have no insurable interest in the car. The insurer probably only covers you third party when driving someone else's car. The company should insure the car and you should be a named driver. If a business expense the premium reduces the company's taxable profits. If not a business expense why involve the company?
Ooops - I feel told off! Yes, that makes sense when you say it like that.... Not that ignorance is ever a defence, but I am genuinely claiming ignorance.
I will get onto Direct Line first thing and talk to them.
I am glad I checked here as I wasn't really sure.
Thanks.
NDA said:
stemll said:
Did you tell the insurer that you don't own it and it is owned by your company?
No, it was all online and I don't recall that coming up as a question.You initial statement "I bought a car... and put it through my company" does rather suggest tax evasion to a naive man like me who has to pay tax on everything (not having a company
)Edited by OverSteery on Sunday 3rd January 16:57
Direct LIne T & C say:
4 What is covered
1a. Cover for you
We will cover you for your legal liability to
other people arising from an accident which
involves your car
Interesting that it says "your car" rather than "the insured car".
I'm deffo reading to much into it, but as it's not your car.......
4 What is covered
1a. Cover for you
We will cover you for your legal liability to
other people arising from an accident which
involves your car
Interesting that it says "your car" rather than "the insured car".I'm deffo reading to much into it, but as it's not your car.......
The last bit of the DL online quote asks you to confirm that a number of statements are TRUE (their capitals).
One of them is
"The vehicle is owned and registered by you, your spouse, partner or civil partner (not business partner), by your parent, employer or lease company"
Which on the face of it looks OK as I assume your company is also your employer, but it then goes on
"Your documents will state that the policyholder is the legal owner and registered keeper of the vehicle"
Which confuses it somewhat. As it says "if you have any concerns please call us"
One of them is
"The vehicle is owned and registered by you, your spouse, partner or civil partner (not business partner), by your parent, employer or lease company"
Which on the face of it looks OK as I assume your company is also your employer, but it then goes on
"Your documents will state that the policyholder is the legal owner and registered keeper of the vehicle"
Which confuses it somewhat. As it says "if you have any concerns please call us"
We have four cars insured with Direct Line.
My "Motor Insurance Schedule" which comes in the same pack as the certificate says under policyholder:
"who is the legal owner and the registered keeper of the car"
I'll bet you diamonds yours says the same. (That's not to say they wouldn't pay out, but I would want them to give me something in writing if I were you)
My "Motor Insurance Schedule" which comes in the same pack as the certificate says under policyholder:
"who is the legal owner and the registered keeper of the car"
I'll bet you diamonds yours says the same. (That's not to say they wouldn't pay out, but I would want them to give me something in writing if I were you)
Edited by 2 sMoKiN bArReLs on Sunday 3rd January 17:15
NDA said:
Yep, looks like I messed up the paperwork... filling out the forms online was a bit rushed.
I'll get on to them tomorrow and sort it out.
Thanks everyone, very useful comments - apart from the one accusing me of tax evasion. There's always one!
Let us know how you get on. I've always find them helpful.I'll get on to them tomorrow and sort it out.
Thanks everyone, very useful comments - apart from the one accusing me of tax evasion. There's always one!
(I'm retired, but also have my own company that may or may not trade at short notice. Direct Line were able to cope with this with no problem with regard to the type of cover required)
2 sMoKiN bArReLs said:
Let us know how you get on. I've always find them helpful.
(I'm retired, but also have my own company that may or may not trade at short notice. Direct Line were able to cope with this with no problem with regard to the type of cover required)
Will do.... I'm retired too, but tart out my limited skills through a consultancy company. Buying an EV car through the consultancy is very tax efficient, and why I did it.(I'm retired, but also have my own company that may or may not trade at short notice. Direct Line were able to cope with this with no problem with regard to the type of cover required)
I've just been onto the DL website and their virtual assistant said:
"Usually, the person who owns the vehicle is the same person who insures it. However, you can still be the Policyholder without being the vehicle’s registered keeper, providing it’s legally owned and registered by one of the following:
• Your spouse, partner or civil partner (not a business partner)
• Your parent
• Your employer or a lease company
Also, the vehicle must be kept at the same address as the Policyholder (no matter who owns it)."
Which seems, superficially at least, to mean that I'm OK. But I will most definitely check tomorrow with a real person.
Speak to your insurance company. It shouldn't be an issue having it insured with the company name on the documents. It's really just a paper exercise assuming that you can use your personal NCD with that specific insurance company. You might be able to switch it on the one policy, or you might have to cancel the existing policy and take out a new one. When you stop having a company car and want to insure a personal car it should be relatively easy. If you decide to have a 2nd car some insurers will also mirror an equivalent discount on to the second car (providing you of course insure both with them) and match it after a year or two giving you a 2nd NCD with for example 5 years NCD. Find an insurer that meets your needs. Or, speak to an insurance broker. In my experience insurance brokers can always find what you need and will haggle on the premium too.
NDA said:
Will do.... I'm retired too, but tart out my limited skills through a consultancy company. Buying an EV car through the consultancy is very tax efficient, and why I did it.
I've just been onto the DL website and their virtual assistant said:
"Usually, the person who owns the vehicle is the same person who insures it. However, you can still be the Policyholder without being the vehicle’s registered keeper, providing it’s legally owned and registered by one of the following:
• Your spouse, partner or civil partner (not a business partner)
• Your parent
• Your employer or a lease company
Also, the vehicle must be kept at the same address as the Policyholder (no matter who owns it)."
Which seems, superficially at least, to mean that I'm OK. But I will most definitely check tomorrow with a real person.
Yep, and deffo get the insurance schedule replaced if they confirm it's OK I've just been onto the DL website and their virtual assistant said:
"Usually, the person who owns the vehicle is the same person who insures it. However, you can still be the Policyholder without being the vehicle’s registered keeper, providing it’s legally owned and registered by one of the following:
• Your spouse, partner or civil partner (not a business partner)
• Your parent
• Your employer or a lease company
Also, the vehicle must be kept at the same address as the Policyholder (no matter who owns it)."
Which seems, superficially at least, to mean that I'm OK. But I will most definitely check tomorrow with a real person.
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