Company Car - Business or personal insurance.

[chandler99]

Afternoon All.

We're getting a few company cars on Business Lease and wondered if someone can advise if we can insure these privately for the guys that get the cars or if the business would have to take out the insurance?

[KevinCamaroSS]

Who has the insurable interest in the cars? Probably the company?

Edited to add: If you are concerned about the costs to the company why not offer a car allowance instead of cars?

Edited by KevinCamaroSS on Friday 3rd February 11:14

[Clarkeysure]

For me Company Name

Why?
Control
In the company name, the company gets the renewal notice, paperwork, the company sets who can amend the policy (so you don't get Data Protection issues amending a driver when the employee has left or on holiday) You will get wider driving restrictions, more flexibility and the company earns the NCD so if Driver leaves the company is in the best position.
When you get 2/3 cars+ a Small Fleet policy is all of the above, plus more flexible again and generally much better value.

Downside

Company car policies are generally more expensive than individual policy.
NCD needs to be the companies, although a half decent broker should get some discount if the "main" driver has a strong track record.

Notwithstanding the above- some including a few clients let the Sales Guys insure their cars online.
Provided the policy notes who the owner and registered keeper is correctly, there is no issue. For me the bigger admin / control / flexibility means I recommend above.

Up's
if it is allocated car for the Employee and says their partner only - it will be very good value.

Downs

If Employee makes a mistake on the admin side, forgets to pay the premium, leaves in a hurry and so on, the company can’t amend "his" policy so you are pretty screwed.
If they don't note the proper owners, car could be written off/ stolen and money goes to Joe Bloggs - screwed.
If you switch cars around staff, then you need to add Drivers with what we call Class 2 business (so all drivers get the proper business use) this may not always be possible and is often expensive and a real pain. In the real world it is a pain,
Multiple policy / admin issues / renewal dates.


In respect of my own position.

I have 2 personal cars, but these are insured on my Company Fleet- premium is a bit more than 2 private car policies for insured and spouse would be.
However, I have full breakdown, any driver over 30 for business and pleasure use. So when my one guy had a car issue, he could use mine for that meeting and likewise in a family emergency father in law can drive the wife's car.
If I get round to a Pool Car - this will go on there and will tick the accountants box, it will be any driver, in the company name and at work.
If I need to add something on for a few days / weeks I can, I just pay for the days on cover. No new annual policy and Vaselinetastic moment when you come to cancel it a few months later and ask for a refund!

HTH