Tell me why this is a bad idea / illegal

[sploosh]

The problem of losing no claims bonus when getting a company car has been discussed a few times on here and got me thinking.

Why couldn't I buy low insurance group car, park it permanently in a garage in a low risk postcode and allow people to insure it to keep their NCB.

Even better I could set up my own insurance company an offer fixed price insurance at £100 /year regardless of age - there is no risk, the car isn't going anywhere.

Tell me why this is a bad idea.

[MondeoMan1981]

To be an insurance company do you not need to lodge £xxxxx will someone ? I'm sure either the AA or RAC do this for their vehicles - self insured.

[Stugots]

R1LOON will prob put u right.

Im sure a car can only be insured by one person at a time no?

[DrTre]

Stugots said:

Im sure a car can only be insured by one person at a time no?

Tis what I thought too (probably wrongly)

[Garlick]

DrTre said:

Tis what I thought too (probably wrongly)

True. I lent a mate one of my (insured) cars but as it was a long term loan he insured it for the duration. I had to cancel mine to allow him to insure it himself.

Fortunately we used the same insurer so it was sorted fairly easily.

[oldcynic]

Many insurance companies will offer several years no claims bonus on receipt of written confirmation of claim-free use of company vehicles, thus negating the problem. My manager had this exact problem and managed a significant introductory bonus.

[papercup]

I know someone who sold their motorbike and continued insuring it for 3 years until he bought another.

[DavidHM]

Because the policyholders won't have an insurable interest in the car, other insurance companies won't recognise "your" NCB.

You'd have to have all the financial guarantees and standing to become an approved person to offer an insurnace product.

Finally, the FSA/ABI might have words about the product as you won't ever have to pay out.

[mgtony]

Isn't it the case that you have to be the owner of the vehicle to be able to insure it? Otherwise you would potentially want to make a claim on a vehicle that you didn't own or have any financial interest in?

[sploosh]

DavidHM said:

Because the policyholders won't have an insurable interest in the car, other insurance companies won't recognise "your" NCB.

This is the main problem I'd thought of - even if everything else was possible the insurance industry would refuse to recognise NCB clocked up this way.

[sinizter]

What about Dayinsure and services like that ? Do they not allow the same car to be insured twice ?