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Is it possible to insure a car you don't own?
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# 1
lisyloo
Old 15-05-2007, 2:15 PM
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Default Is it possible to insure a car you don't own?

Would appreciate some advice.

I am about to lend my nephew some money for a car.
He can't get a bank loan as he's only been in his job 2 weeks and they have said 3 months. He goes to work at about 5:30 in the morning so public transport is useless.

Anyway I would prefer to keep ownership of the car. More to send him a psychological message than anything else.

Will this cause problems when he comes to insure as he will definitely be the main (only) driver?

I have a feeling it will be a problem.
Are there any ways round it, or will the car simply have to go into his name?
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# 2
newlywed
Old 15-05-2007, 2:19 PM
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Yes. I did this for years with CIS insurance. (Co-op)

It was registered to my dad, insured under my name. We told them about it and they were fine with it (think they spoke to my Dad too about it to agree it).

The only thing is you can't do the online tax renewal (as owner and insurance are different names) and any speeding fines, tax renewal is sent to the Owner not the driver So you will have to sign the form each time for the tax renewal. - Think you are also liable if the tax isn't renewed too.


Edit: did this for the last 13 years on 3 different cars that I drove and Dad actually owned, and only ever had a brief question about it, never any problem or issue.
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Last edited by newlywed; 15-05-2007 at 2:21 PM.
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# 3
lisyloo
Old 15-05-2007, 3:07 PM
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Thanks for he advice.
It's more of a psychological thing than anything else.
He's 18 and showed a lot of imaturity so far so it might be appropriate that he knows that the car won't be "his" until he's paid for it.

On the other hand he might need ownership to take responsibility.

Not sure, but thanks for the advice anyway.
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# 4
minimadtrix
Old 15-05-2007, 3:35 PM
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You will find that some insurers will not insure you if you are not the registered keeper. I had this problem when I sold my car and wanted to take out private insurance on my husband's Motability car.

When we moved, we got round this by informing DVLA of this, but along with the change of address, we added my name to the registered keeper. The documents came back with both our names on, no problems.
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# 5
lisyloo
Old 15-05-2007, 3:46 PM
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Quote:
You will find that some insurers will not insure you if you are not the registered keeper.
That's what I was worried about.
I don't want to be forced to go with CIS because at 18 the insurance is extortionate so we need to be able to shop around.
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# 6
dauphin
Old 15-05-2007, 4:23 PM
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It will seriously restrict the number of insurers willing to quote. However, iirc, the confused.com questionnaire (and I guess others like it) ask the question whether the proposed insured is the registered keeper. So if you start by getting a quote through them in your nephew's name - with his consent of course - and you answer "no" to that question, you will get a good idea of which insurers will and which won't do this.
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# 7
agaveworm
Old 15-05-2007, 9:31 PM
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One of the fundamentals of Insurance is "insurable interest". You will struggle to find a 'decent' Insurer that is prepared to offer cover where this lacks.
Reassuringly expensive
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# 8
lisyloo
Old 16-05-2007, 9:55 AM
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Thanks for the help.

Loan is currently off as darling nephew (little toerag!!) does not actually NEED a new car, just wants one.
Trying to pull the wool over our eyes so currently off.

But thanks for the info. It's useful to know.
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# 9
Andy L
Old 16-05-2007, 10:06 AM
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Quote:
Originally Posted by agaveworm View Post
One of the fundamentals of Insurance is "insurable interest". You will struggle to find a 'decent' Insurer that is prepared to offer cover where this lacks.
In this case their obviously is though.
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# 10
agaveworm
Old 16-05-2007, 8:20 PM
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Quote:
Originally Posted by Andy L View Post
In this case their obviously is though.
Sorry, perhaps I misunderstood. OP says "Anyway I would prefer to keep ownership of the car". ie, ownership not transferring to the Insured?
Reassuringly expensive
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# 11
MarkyMarkD
Old 16-05-2007, 9:24 PM
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agaveworm is right, and Andy L wrong - the insured would not have any insurable interest.

I would suggest, apart from the insurable interest issue, that you remember that "registered keeper" and "owner" are NOT the same thing.

It is illegal to have a car registered in your name if it's real keeper is your nephew.

It is perfectly OK for the registered keeper and the owner to be different.

So, in lisyloo's situation (and I acknowledge that she's no longer going ahead, but this may help others) - lisyloo should buy the car, with the contract made out to her. It's then HER car as she is the owner.

She should then register it in her nephew's name. He is then the registered keeper.

This makes everything a lot easier - most insurers will insure him, and he gets the speeding fines, road tax renewal letters, etc.

When eventually he pays off the loan, give him an agreement transferring legal ownership. Job done!
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# 12
Andy L
Old 16-05-2007, 9:54 PM
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Surely the son does have an insurable interest in the car despite not owning it: He's responsible for any damage caused to the car & to 3rd parties. Otherwise how would people on HP deals insure the car?
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# 13
MarkyMarkD
Old 16-05-2007, 10:55 PM
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I think that the insurable interest point is debatable. It depends IMHO on the substance of the car being "owned" by lisyloo. I don't think she really means that she wants to own it - she wants to know that her nephew can't sell it until he's paid for it in full. But she would expect him to pay for its care and maintenance and to take the financial risk of its depreciation etc.

Effectively she wants him to own the car, but for the loan to be secured on the car. In that case, he evidently DOES have an insurable interest.

I think your point regarding responsibility for the car is also relevant and I can't honestly justify how being responsible financially for any damage to the car cannot constitute an insurable interest.

So, after some further thought, I agree with you Andy.
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# 14
nibs
Old 05-03-2010, 2:00 PM
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Default insurance query

Hi,just wondered if the law was still the same as this old thread.
This is the situation -
DH owns the car (but has just bought a new one).
He wants to keep the old one as we will give it to my DS next year.
We are happy to allow my niece to use it for a year.

Can she legally insure it while DH is the legal owner and registered keeper?
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# 15
property.advert
Old 05-03-2010, 9:56 PM
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You could insure it but have it any driver which might be cheaper than selecting a 22 year old as main driver.
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# 16
dacouch
Old 05-03-2010, 10:22 PM
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Quote:
Originally Posted by property.advert View Post
You could insure it but have it any driver which might be cheaper than selecting a 22 year old as main driver.
Please be very careful if you decide to follow this advice as it could cause lots of problems even if you do succeed in finding an insurer that does not restrict their any driver policies to drivers over 25
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