Car Insurance - Legal Owner & Registered Keeper
Discussion
Why is it that (some?) insurance companies won't do a car policy where the legal owner and registered keeper aren't the same person? Surely it's still quite common for couples to have the man pay for his partner's car, but have the woman as the registered keeper so that's she's responsible for her own tax, fines, insurance, etc?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
clockworks said:
Why is it that (some?) insurance companies won't do a car policy where the legal owner and registered keeper aren't the same person? Surely it's still quite common for couples to have the man pay for his partner's car, but have the woman as the registered keeper so that's she's responsible for her own tax, fines, insurance, etc?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
There is a reason why some people have a relatively bad credit rating, struggle to get an APR at anything approaching "normal" rates and need to keep borrowing money. It is the same reason as why some insurance companies do not wish to risk insuring these people.My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
Await next year's thread titled "I lent my housemate money to buy a car and she hasn't paid me back, what should I do?"
I presume the question was something along the lines of - who owns the vehicle with the answers being "the policyholder", "the lease/finance company" and "someone else" (i.e. a private individual or some other entity)?
I don't imagine they have a problem with officially financed cars, just private arrangements like what you've described.
Also what NGee said - maybe the bad credit rating pushed what would be a higher risk opportunity into one where the underwriter is not interested.
I don't imagine they have a problem with officially financed cars, just private arrangements like what you've described.
Also what NGee said - maybe the bad credit rating pushed what would be a higher risk opportunity into one where the underwriter is not interested.
clockworks said:
Why is it that (some?) insurance companies won't do a car policy where the legal owner and registered keeper aren't the same person? Surely it's still quite common for couples to have the man pay for his partner's car, but have the woman as the registered keeper so that's she's responsible for her own tax, fines, insurance, etc?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
What could go wrong lending money to someone with bad credit eh? Don't lend money you're not prepared to lose forever.My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
I'm guessing she's not unattractive?
No sex involved. Long term friend, who's been through a bad few years.
House sharing will work for us as we drift towards our pensions.
She's working full time, responsible job. Should be a relatively low risk.
Her current car is on finance, basically credit card rates. Her problem is that she has an IVA from 4 years ago
House sharing will work for us as we drift towards our pensions.
She's working full time, responsible job. Should be a relatively low risk.
Her current car is on finance, basically credit card rates. Her problem is that she has an IVA from 4 years ago
Odd, I bought my wifes car and registered it in her name for insurance purposes mainly - her previous car was in my name and all insurance policies we took out removed the doc benefit if the car was not registered in the policy holders name. For all intents and purposes, the car is mine i.e. I maintain it, put fuel in it, pay insurance and tax etc, however it is registered to her and she is the main driver.
Of course should the situation arise that we were to break up I'd not have a claim over it, however given she would need it to transport our daughter I'd not give a monkeys.
Is the issue that you will have a private agreement saying she won't own the car ? All seems a bit odd to me that insurance would give a hoot.
Of course should the situation arise that we were to break up I'd not have a claim over it, however given she would need it to transport our daughter I'd not give a monkeys.
Is the issue that you will have a private agreement saying she won't own the car ? All seems a bit odd to me that insurance would give a hoot.
clockworks said:
Why is it that (some?) insurance companies won't do a car policy where the legal owner and registered keeper aren't the same person? Surely it's still quite common for couples to have the man pay for his partner's car, but have the woman as the registered keeper so that's she's responsible for her own tax, fines, insurance, etc?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
I would suggest that your housemate is overthinking this, and thus causing problems for themselves.My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
They should just say that they are both the owner and RK, without complicating matters and going into the details of their private financial arrangements.
It would be the exact same situation if they took out an unsecured bank loan to pay for the car. The car would be bought for cash, the bank would not have any legal interest in the car itself, and the insurance company would not need to be told of the bank loan.
SuperNads said:
clockworks said:
Why is it that (some?) insurance companies won't do a car policy where the legal owner and registered keeper aren't the same person? Surely it's still quite common for couples to have the man pay for his partner's car, but have the woman as the registered keeper so that's she's responsible for her own tax, fines, insurance, etc?
My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
What could go wrong lending money to someone with bad credit eh? Don't lend money you're not prepared to lose forever.My housemate has just been told that they won't insure her on the car she's collecting on Friday because she told the truth that it'll be registered in her name, but I'll be lending her the money. I'll be settling the bill with the dealer, paperwork in my name, and she'll be paying me back monthly. We'll be drawing up an agreement that the car is legally mine until she makes the final repayment.
She has a relatively bad credit rating, struggles to get an APR at anything approaching "normal" rates, and I have money sitting in the bank earning next to nothing
Isn't this how it works with HP and leasing? The finance/leasing company legally owns the car, but the driver is the registered keeper?
What's the difference in our case?
I'm guessing she's not unattractive?
I notice that your final point was skillfully avoided in the OP's reply ;-)
She tried to do the change of vehicle online with the insurer, and answered the ownership question truthfully - I will own it, she will have the logbook in her name - and she got a message that she couldn't do it online, she'd have to phone them. That's when they said "we can't do that".
She didn't go into details about repayments (private finance), just that I would be paying the dealer, so the invoice would be in my name.
Common sense suggests that the person who pays for something is the legal owner, until they pass ownership to another person.
Maybe insurance companies take it to mean something else, or that there's potentially something dodgy unless the legal owner and registered keeper are the same person?
It was actually her suggestion that I own the car until she has paid me back, and that we draw up an agreement laying out the financial details. I was thinking the same thing, but it was her who said it first.
She didn't go into details about repayments (private finance), just that I would be paying the dealer, so the invoice would be in my name.
Common sense suggests that the person who pays for something is the legal owner, until they pass ownership to another person.
Maybe insurance companies take it to mean something else, or that there's potentially something dodgy unless the legal owner and registered keeper are the same person?
It was actually her suggestion that I own the car until she has paid me back, and that we draw up an agreement laying out the financial details. I was thinking the same thing, but it was her who said it first.
I've done this in November for the new family wagon. We got rid of her old Fabia for a brand new Karoq on PCP. As I am the sole earner, the VWFS contracts are in my name (I am the legal owner), but she is on the V5 (registered keeper).
I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
devnull said:
I've done this in November for the new family wagon. We got rid of her old Fabia for a brand new Karoq on PCP. As I am the sole earner, the VWFS contracts are in my name (I am the legal owner), but she is on the V5 (registered keeper).
I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
Is the insurance policy in your name, or her's?I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
clockworks said:
She tried to do the change of vehicle online with the insurer, and answered the ownership question truthfully - I will own it, she will have the logbook in her name - and she got a message that she couldn't do it online, she'd have to phone them. That's when they said "we can't do that".
She didn't go into details about repayments (private finance), just that I would be paying the dealer, so the invoice would be in my name.
Common sense suggests that the person who pays for something is the legal owner, until they pass ownership to another person.
Maybe insurance companies take it to mean something else, or that there's potentially something dodgy unless the legal owner and registered keeper are the same person?
It was actually her suggestion that I own the car until she has paid me back, and that we draw up an agreement laying out the financial details. I was thinking the same thing, but it was her who said it first.
It all comes down to risk and how much/what type of risk a particular insurer wants to expose itself to. If your insurer has data to show that that type of arrangement results in them being exposed to more risk than normal then they'll either refuse to quote or up the premium. Maybe their data suggests that a driver may be more reckless if its not their car? She didn't go into details about repayments (private finance), just that I would be paying the dealer, so the invoice would be in my name.
Common sense suggests that the person who pays for something is the legal owner, until they pass ownership to another person.
Maybe insurance companies take it to mean something else, or that there's potentially something dodgy unless the legal owner and registered keeper are the same person?
It was actually her suggestion that I own the car until she has paid me back, and that we draw up an agreement laying out the financial details. I was thinking the same thing, but it was her who said it first.
clockworks said:
devnull said:
I've done this in November for the new family wagon. We got rid of her old Fabia for a brand new Karoq on PCP. As I am the sole earner, the VWFS contracts are in my name (I am the legal owner), but she is on the V5 (registered keeper).
I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
Is the insurance policy in your name, or her's?I just spoke to my insurer LV and explained the situation and they set up the policy appropriately. They were just concerned with who was on the V5, the finance company or her.
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