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Insurance for financed car
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BillTrac
Posts: 1,869 Forumite
Bit of waffle first.
Asking for my daughters boyfriend
He wants to buy a car, wanted a PCP deal but he has no credit history. He is on a good wage so the payments are no problem. His mum was going to be a guarantor but that is a no go either apparently. Then his mum was going to do the PCP deal and let him use the car.
Found out the delivery is 12-14 weeks(daft when they can't sell the damn cars, but there you go)
He needs a car asap as his old one died on the motorway, and he is relying on a hire car at the moment. He needs one to get to and from work, 45 miles each way sometimes 7 days a week. Needs to be reliable etc as it is motorway and often 2-3 am before he leaves work.
He has now seen a car he likes. His mum is going to finance it, got a good deal.
The question is that they have been told that his mum is required to insure the car fully-comp in her name, can't be in his name. No problem. But if he is a named driver but does most of the driving surely this is "fronting"?
Anyone got some sensible advise?
Asking for my daughters boyfriend
He wants to buy a car, wanted a PCP deal but he has no credit history. He is on a good wage so the payments are no problem. His mum was going to be a guarantor but that is a no go either apparently. Then his mum was going to do the PCP deal and let him use the car.
Found out the delivery is 12-14 weeks(daft when they can't sell the damn cars, but there you go)
He needs a car asap as his old one died on the motorway, and he is relying on a hire car at the moment. He needs one to get to and from work, 45 miles each way sometimes 7 days a week. Needs to be reliable etc as it is motorway and often 2-3 am before he leaves work.
He has now seen a car he likes. His mum is going to finance it, got a good deal.
The question is that they have been told that his mum is required to insure the car fully-comp in her name, can't be in his name. No problem. But if he is a named driver but does most of the driving surely this is "fronting"?
Anyone got some sensible advise?
0
Comments
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Hi Bill,
It would be fronting if his mum is declared as the main driver.
If it's his mums policy but he is declared correctly as the named driver then it's not fronting, because you aren't pretending she's the main driver to save money.0 -
Thanks Lisyloo,
so he has to be THE named driver, not A named driver? Is that correct.
Apologies for my stupidity0 -
Sorry, I did this before.
I meant MAIN driver.
She is the policyholder, he will have to be a named driver because it's not his policy.
However what's really crucial is that the MAIN driver is correctly specified.0 -
He or his mum may also be interested in arranging some form of GAP cover in case the vehicle is written off and the settlement amount provided by the insurer is not sufficient to settle the outstanding debt due to the finance company.0
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Shudder,
yes I recommended GAP insurance so that is being sorted as well0
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