Invalid Insurance

Sally_A

If you have signed a contract for the lease car, you are able to insure it - there is insurable interest.

Swiftcover will probably be insuring 1000's of leased vehicles. Their parent company AXA certainly do.

turvell21

yes they sent me an email today saying they can insure lease under there other departments. but cause i didnt know it was not covered if i was not the owner they just wont pay. and are saying i acted faudulently i didnt at all and now im right in the crap like ive not suffered enough

Sally_A

Just put a quote through in my name - here's part of their small print at quote level.

What we can't cover

We do not insure certain types of vehicle

By accepting this insurance you confirm that none of the following applies to the vehicle you are insuring:

1. It has been previously written-off or scrapped (including where the vehicle log book identifies that the car has been previously damaged or repaired or an HPI database check identifies the vehicle as Category A, B, C or D write off).
2. The policyholder or their spouse, civil partner, partner, parent or child is not the registered keeper and legal owner.
3. It is worth more than £60,000 for new customers and more than £75,000 for renewing customers.
4. It is a caravan, commercial vehicle, motor home, motor bike, import, kit car, classic car, custom car, limousine or wedding car.
5. It is modified to improve performance or change handling.
6. It is left hand drive.
7. It is used for diplomatic, emergency services or military purposes.
8. It has a "Q" plate.
9. If it is used to carry passengers for profit or used for trade, delivery, hire, commercial use or as a pace car.

turvell21

well yes i see this now but insuring cars for last 12 years never occured to me this was any different as i was insuring a car. and im sure most people dont read all that well ive asked loads of people today if they read it all and they say no just as i dont. cleary i will from now on tho

deutsch

just a query.
if insurance companies do insure leased vehicles, and there is a total loss for whatever reason, will they pay the lease company and not the policyholder?
if the policyholder still owes the lease money, they will also continue paying for a car that they don't have as it was on credit and only upon expiry is the car fully theirs? i feel like i'm confusing or thinking something else.

raskazz

deutsch wrote: »

just a query.
if insurance companies do insure leased vehicles, and there is a total loss for whatever reason, will they pay the lease company and not the policyholder?
if the policyholder still owes the lease money, they will also continue paying for a car that they don't have as it was on credit and only upon expiry is the car fully theirs? i feel like i'm confusing or thinking something else.

In every policy wording I have ever seen the insurer states that they will pay the legal owner of the vehicle - which in the case of a leased car is the leasing company. This is one of the reasons why people purchase GAP cover.

InsideInsurance

deutsch wrote: »

if the policyholder still owes the lease money, they will also continue paying for a car that they don't have as it was on credit and only upon expiry is the car fully theirs?

If the total loss settlement is below the outstanding finance the person would have to keep paying the finance. This is the same if it's a lease or if you simply had a loan to buy the car.

There are a number of products to protect against this risk, the simplest is GAP as has already been mentioned.