Insuring a PCP financed car

[Venisonpie]

I'm about to enter a PCP for the first time (let's not get side tracked into that debate) and finding online insurance portals don't cater for this. The car status options give a "personal lease" or "other" as closest fits.
What are peoples experiences here?

[interstellar]

The car belongs to you on a pcp so it’s your car and you will have the v5. Can’t be any more straightforward.

Insurance will be normal

[Venisonpie]

interstellar said:

The car belongs to you on a pcp so it’s your car and you will have the v5. Can’t be any more straightforward.

Insurance will be normal

Hmm, this article suggests otherwise.

https://www.parkers.co.uk/car-finance/advice/pcp-i...

[The Rotrex Kid]

interstellar said:

The car belongs to you on a pcp so it’s your car and you will have the v5. Can’t be any more straightforward.

Insurance will be normal

The car is property of the finance company as it would be on HP.

OP, you simply insure the car as you as the owner and registered keeper. In the event of total loss you would be responsible for paying any excess money not covered by the insurance company.

Edit: you can absolutely try explaining to your insurance company that you’re not technically the owner but I doubt they will understand (or care). If the car was to be written off they will simply pay any balance straight to the finance co anyway as it is very clearly marked on HPI they hold a financial interest in the car which the insurer will see.

Edited by The Rotrex Kid on Friday 4th September 06:48

[Venisonpie]

The Rotrex Kid said:

The car is property of the finance company as it would be on HP.

OP, you simply insure the car as you as the owner and registered keeper. In the event of total loss you would be responsible for paying any excess money not covered by the insurance company.

Indeed, the finance company own the car. This article is interesting too.

My concern is the validity of the insurance in the first place.

https://www.creditplus.co.uk/blog/legal-ownership/

[Venisonpie]

Mods, this isn't really finance it's insurance - maybe flip it back to GG for better responses?

[anonymous-user]

As has already been said, you’re the registered keeper and owner for the purposes of insurance. If you’re concerned just talk to an actual insurance company or broker - they’ll confirm it.

[BeMo]

From memory the comparison sites ask two separate questions for registered keeper / owner, on PCP the finance company is the owner until the final payment is made.

I think my PCP is down as a private lease after having this discussion with the insurer, for what it's worth it made no difference to the price of cover.

ETA: Presumably the fact you are RK would differentiate it from a traditional lease agreement.

[maniac886]

When I insured my PCP car I put the owner down as private lease and myself as the registered keeper - I confirmed this with my insurance company.

[Tommo87]

anonymous said:

[redacted]

Agreed. You insure the car, for its value, as you would if you owned it outright. No different to a scenario, where you might have taken out a large bank loan to purchase it.
Either way, the car is registered in your name.

In the even of a total loss, the insurance company will only pay you its worth at that time, but your finance agreement/bank loan still stands, and you will owe the fall amount payable to that finance/loan provider.

To mitigate those (potential) shortfalls in value vs amount owed, people take out gap insurance in the initial years, to cover an deficit between the two until the cars value and outstanding finance achieve a level of parity.

[waynecyclist]

Had 4 cars on pcp and just insured as normal only thing extra was gap insurance to cover shortfall if the worst was to happen

[wiliferus]

This is the difference between ‘Owner’ and ‘Registered Keeper’.

The RK isn’t necessarily the owner, indeed on the front of the V5 it’s written in big red letters.

From memory Insurers ask ‘Are you the Registered Keeper’. So regardless of finance, You will be the RK.

[Venisonpie]

BeMo said:

From memory the comparison sites ask two separate questions for registered keeper / owner, on PCP the finance company is the owner until the final payment is made.

I think my PCP is down as a private lease after having this discussion with the insurer, for what it's worth it made no difference to the price of cover.

ETA: Presumably the fact you are RK would differentiate it from a traditional lease agreement.

Cheers, this is what the insurers agreed so I'm comfortable with that.

Now the exciting bit!