Personal No Claims Discount to Company Car Insurance

[torx]

I'm looking at getting a Porsche Taycan through my own Limited company therefore will also be getting the car insurance through the company.

This being the first car through the company and the only car I will drive will I be able to use my no claims discount ) that I have from my personal insurance?

No idea how it works. Googling it and can only see results where people are trying to find out if they can use there no claims from company car insurance to personal, not the other way round.

[TwigtheWonderkid]

You'll need to speak to the individual insurer. Some will allow personal ncb on a company policy, some won't.

[Fastlane]

You can just buy the personal policy through the business as it will likely be much cheaper for the business, as company policies tend to be very expensive. That way you can use your NCB.

I've got 2 company leased cars both insured this way. My accountant is happy with this and reckons HMRC would have no problem with it either.

Talk to your accountant.

[torx]

Thanks, my only worry with that is if the insurance company would have an issue with it.

I think I will call them to double check.

[CraigyMc]

Be aware that after you're done with this arrangement, the transfer of your "company-built" NCB back into a private one is likely to be impossible unless you have another policy on the go at the same time in your own name on something.

If you only drive a company vehichle, most insurers treat it like you haven't had a policy at all and so after 2 years your personal NCB reverts to zero, just as it would if you'd not been driving anything.

citation: me. I had 7 years NCB, drove a company car for 3 years (during which time had no policy in my name on anything else) then struggled to get a private policy to give me any NCB when I went back to private cars again, even though by that point I'd been driving for 10 years without any incidents.

[torx]

Thanks for the info.

Going for a 3 year business lease and that being the only car I will have I would lose it anyway.

[Glosphil]

After 5 years driving only a company car I left that company & needed to insure a car in my name. The company gave me a letter stating I had not caused a claim during the 5 years & an insurance company gave me 3 years NCB.

[vikingaero]

CraigyMc said:

Be aware that after you're done with this arrangement, the transfer of your "company-built" NCB back into a private one is likely to be impossible unless you have another policy on the go at the same time in your own name on something.

If you only drive a company vehichle, most insurers treat it like you haven't had a policy at all and so after 2 years your personal NCB reverts to zero, just as it would if you'd not been driving anything.

citation: me. I had 7 years NCB, drove a company car for 3 years (during which time had no policy in my name on anything else) then struggled to get a private policy to give me any NCB when I went back to private cars again, even though by that point I'd been driving for 10 years without any incidents.

I agree with this. We had a company/family fleet policy years ago. All cars had max NCB and when we dissolved the company (Mum & Dad retiring and the rest of us with professional jobs elsewhere), we had to hunt around for Insurers that would allow us full NCB. I think we all insured with Direct Line as they allowed it.

[ScoobyChris]

CraigyMc said:

citation: me. I had 7 years NCB, drove a company car for 3 years (during which time had no policy in my name on anything else) then struggled to get a private policy to give me any NCB when I went back to private cars again, even though by that point I'd been driving for 10 years without any incidents.

I was in a similar situation and the lease company providing the company car were happy to issue a letter stating the years I'd had the company car and that there had been no claims during that period. My new insurer then added them onto my previous personal NCB.

Chris

[EyeHeartSpellin]

Just insure it personally, the insurance company will ask are you the registered owner/keeper which you answer no to as it's a lease. Will save you a load of hassle. Then expense the insurance.

[Sheepshanks]

torx said:

I'm looking at getting a Porsche Taycan through my own Limited company therefore will also be getting the car insurance through the company.

This being the first car through the company and the only car I will drive will I be able to use my no claims discount ) that I have from my personal insurance?

No idea how it works. Googling it and can only see results where people are trying to find out if they can use there no claims from company car insurance to personal, not the other way round.

This has come up before and a few people said they just insured the car as normal (ie as a private individual) but stating a lease company owned it (as you would do if you had it on PCH).


I think this is being economical with the truth and may be dodgy - if it's a company car then it should have company insurance. As someone else mentioned, it's generally expensive, partly becasue the policies usually cover anyone to drive.

[EyeHeartSpellin]

Sheepshanks said:

torx said:

I'm looking at getting a Porsche Taycan through my own Limited company therefore will also be getting the car insurance through the company.

This being the first car through the company and the only car I will drive will I be able to use my no claims discount ) that I have from my personal insurance?

No idea how it works. Googling it and can only see results where people are trying to find out if they can use there no claims from company car insurance to personal, not the other way round.

This has come up before and a few people said they just insured the car as normal (ie as a private individual) but stating a lease company owned it (as you would do if you had it on PCH).


I think this is being economical with the truth and may be dodgy - if it's a company car then it should have company insurance. As someone else mentioned, it's generally expensive, partly becasue the policies usually cover anyone to drive.

Sorry bud but you have mixed up 2 things there. Insurance for a fleet car that multiple people will use such as a pool car that estate agents use to go to house viewings then yes definitely requires a company policy. In the case of the OP a director of a Ltd using the car himself he can insure it on a personal policy as use it for work as long as he had asked for social, domestic and business use. It's not dodgy in any way at all.

Rember it's a lease. If you couldn't do this then anybody doing a personal lease would need to be an employee of the leasing company who own the car regardless of how it's financed.

[TwigtheWonderkid]

EyeHeartSpellin said:

Sheepshanks said:

torx said:

I'm looking at getting a Porsche Taycan through my own Limited company therefore will also be getting the car insurance through the company.

This being the first car through the company and the only car I will drive will I be able to use my no claims discount ) that I have from my personal insurance?

No idea how it works. Googling it and can only see results where people are trying to find out if they can use there no claims from company car insurance to personal, not the other way round.

This has come up before and a few people said they just insured the car as normal (ie as a private individual) but stating a lease company owned it (as you would do if you had it on PCH).


I think this is being economical with the truth and may be dodgy - if it's a company car then it should have company insurance. As someone else mentioned, it's generally expensive, partly becasue the policies usually cover anyone to drive.

Sorry bud but you have mixed up 2 things there. Insurance for a fleet car that multiple people will use such as a pool car that estate agents use to go to house viewings then yes definitely requires a company policy. In the case of the OP a director of a Ltd using the car himself he can insure it on a personal policy as use it for work as long as he had asked for social, domestic and business use. It's not dodgy in any way at all.

Rember it's a lease. If you couldn't do this then anybody doing a personal lease would need to be an employee of the leasing company who own the car regardless of how it's financed.

The point is it's not being leased to the individual, it's being leased to the company. Therefore, you should really have a policy in the company name. But, with the agreement of the insurer, you can insure it in your personal name, telling the insurance company that it's leased to your company. If the insurer is happy with that and agree to insure it on a personal policy, that's fine.

[torx]

Thanks for the replies, I will contact the insurance first to make sure it is okay to do it personally with business use and the company is paying for it.

[Sheepshanks]

torx said:

Thanks for the replies, I will contact the insurance first to make sure it is okay to do it personally with business use and the company is paying for it.

The crucial bit is that the lease is in the company's name. My company pays for my car - but by car allowance and mileage. I'm the owner and RK.

I'm sure a lot of people "get away" with this, either becuase they mumble or the call handler doesn't fully understand what's happening. But it's not correct.

[EyeHeartSpellin]

Sheepshanks said:

torx said:

Thanks for the replies, I will contact the insurance first to make sure it is okay to do it personally with business use and the company is paying for it.

The crucial bit is that the lease is in the company's name. My company pays for my car - but by car allowance and mileage. I'm the owner and RK.

I'm sure a lot of people "get away" with this, either becuase they mumble or the call handler doesn't fully understand what's happening. But it's not correct.

It's irrelevant who owns or pays for the car. You can get car insurance on a car that a random bloke down the road owns. The only relevant bit is that you are honest with the insurance company when they ask if you are the registered owner and keeper of the car. It's fine to answer that question as no. And tick the box for business use. I can lease a car for a family member and they insure it, it's completely fine. My wife could take finance on a car, pay for it from her account and I drive it with my own insurance. You never own the car if you lease it anyway. No one is getting away with it, its just how it works. If the police pull you over they will ask are you insured to drive this car, not who pays for it.

Edited by EyeHeartSpellin on Friday 29th January 16:23