insurance cover note needed to release new car?

donglemouse

a friend is due to collect a new car later this week, the dealer is insistent they can not let the car leave the garage without seeing an insurance cover note for the new car

is this right? obviously you need insurance but i would have thought as long as insurance was arranged and in place it wouldn't matter if the cover note was in the post?

any thoughts? i have never heard of this before and know plenty of other people who have bought new cars without having to show an insurance cover note for the new car

dzug1

IME the dealer needs a cover note to tax the vehicle.

Sometimes they will arrange a week's 'free' insurance so that they can do so easily - and have the opportunity to sell you an upgrade to a year's insurance.

Premier_2

The dealer usually needs insurance to arrange tax on the car.

hartcjhart

see similar here

http://forums.moneysavingexpert.com/showthread.html?t=2036431


Dzug
traders can tax any vehicle with their trader policy

iamana1ias

I'm guessing the car is being bought on finance and the dealer is enduring their interests are sufficiently covered

donglemouse

iamana1ias - the car is being paid for with cash and the dealer with have been paid in full at the point the car is handed over

hartcjhart - thanks, if the dealer can tax the vehicle using their trader policy this would explain why i have never heard of anyone else having the issue of having to show a cover note specific to the new car

it also makes sense in this context the dealer has been exceptionally keen they take a free 7 day manufacturer policy as it gives an instant cover note to the dealer (and a cash bonus for the sales person perhaps?)

dogbot

The dealer won't really get anything for taking out the 7 day cover, certainly not compared to anything they would get from the sale of the vehicle, extended warrantee or such, if anything at all. The deals are with the manufacturers not franchise dealers. Only exception is someone like Car Giant who are so huge Aviva did a deal with them. That said, if it is Arnold Clarke they have their own brokerage attached to flog motor insurance along with car sales, so there may be a bit of extra cash in it for the salesman in that case.

The 7 day cover is the best way to make sure the vehicle is insured and everyone is happy on the day your friend collects it - then just sort out your own cover when you like.

BenL

I have had insurance companies be so kind as to fax across a copy to the garage. This has been accepted by the garage.

Postal strike back end of this week as well don't forget.