Temporary insurance, lending friend car

emma396

Hi all,

A couple of questions I wanted to ask, really sorry if they've been answered previously, I have tried looking!!!

So, the scenario is that I own a car, and my insurance is due to expire on 8/9/11. I have just serviced, taxed and MOT'd it. I am leaving the Uk on 19/9/11 to go travelling for around 6 months, so my friend is going to borrow my car.

1. Does anyone know of any companies that offer short term insurance policies, 6 months for my friend and 11 days for me (if i decide I want to use it in the 11 days)

2. Is it ok for my friend to insure car if she is not the registered owner?

3. Is there anything I should know or be concerned about regards to lending friend car?

Looking forward to any responses.

Thanks :j

Weird_Nev

You won't get a 6 month policy - it's too long to be short term, and it's too short to be a full year! I think the best way to do it would be to buy a 10 month (bonus accelerator) or 12 month policy as normal. Then, when you return, they can cancel the policy and get the remaning insurance back pro-rata minus an admin fee - usually around £25.

As for the "policy holder" not being the registered keeper, it isn't a problem so long as the company know about it. Some do specify in their small print that policy holder and registered keeper must be one and the same, so make sure you explain the situation to them befre taking out the policy to prevent any issues later on.

In reality, you should probably change your friend over to be registered keeper for the 6 months, then change it back to you. For example, if your friend were to pick up a speeding ticket, but the paperwork went to your address, then you could actually be liable for 3 points and the fine simply for not disclosing who the driver was at the time of the offence. That's the legal responsibility of the registered keeper, but you'd know nothing about it if abroad!
It really comes down to whether you want to record a couple more keepers on the V5, and how much you trust your friend to do the right thing.

bigjl.

Weird_Nev wrote: »

You won't get a 6 month policy - it's too long to be short term, and it's too short to be a full year! I think the best way to do it would be to buy a 10 month (bonus accelerator) or 12 month policy as normal. Then, when you return, they can cancel the policy and get the remaning insurance back pro-rata minus an admin fee - usually around £25.

As for the "policy holder" not being the registered keeper, it isn't a problem so long as the company know about it. Some do specify in their small print that policy holder and registered keeper must be one and the same, so make sure you explain the situation to them befre taking out the policy to prevent any issues later on.

In reality, you should probably change your friend over to be registered keeper for the 6 months, then change it back to you. For example, if your friend were to pick up a speeding ticket, but the paperwork went to your address, then you could actually be liable for [STRIKE]3 [/STRIKE] 6 points and the fine simply for not disclosing who the driver was at the time of the offence. That's the legal responsibility of the registered keeper, but you'd know nothing about it if abroad!
It really comes down to whether you want to record a couple more keepers on the V5, and how much you trust your friend to do the right thing.

Corrected that for you.

colino

I don't think this is so cut and dried. For road risks the above info is OK, but what happens if the car is damaged or stolen? Your friend isn't at a loss as he doesn't have an insurable interest in it. Why not make it nice and clean, you "sell" it to your friend and buy it back when you return.

fivetide

colino wrote: »

Your friend isn't at a loss as he doesn't have an insurable interest in it. .

This is the key point. I think you'll find it very difficult to do. Some places will but they are selctive and you are likely to pay a premium for it as well.

I'd be finding a new policy in your name and adding them as the named and main driver. That should be easier. Your friend can then pay you for the policy and you don't have to worry about cover either.

5t

Weird_Nev

bigjl. wrote: »

Corrected that for you.

Ta, I'm a little bit rusty on Traffic law, I spend most of my time concentrating on real law.

thenudeone

colino wrote: »

I don't think this is so cut and dried. For road risks the above info is OK, but what happens if the car is damaged or stolen? Your friend isn't at a loss as he doesn't have an insurable interest in it.

If I lend you my car I expect to get it back in one piece and if someone steals it whilst you were using it I would expect you to stump up for it.
Therefore I would argue that you would have an insurable interest in it (especially if my expectations were agreed in writing), and as long as your insurance company accept the situation, there should be no problem.

Hire companies have no problem in getting customers to pay for insurance to cover damage or theft even if they are only hiring a car for an hour (although I accept there is a difference because the customer may not be the policyholder). But they will allow companies to hire vehicles without paying for insurance, when covered by the hiring company's own insurance policy, even though the hiring company does not own the vehicle.

Have a look here for confirmation (although not necessarily an authoritative source)
http://www.carinsurancebrokers.co.uk/claiming/insurable-interest-claims.htm

emma396

fivetide wrote: »

I'd be finding a new policy in your name and adding them as the named and main driver. That should be easier. Your friend can then pay you for the policy and you don't have to worry about cover either.

5t

I asked Admiral about this this morning, they said that as it's 6 months, friend needs her own insurance....