Insurance for cars on PCP

jaybeetoo

Has anyone had problems getting insurance for a car they don't own but for which they are the registered keeper on the V5?

My wife has a car on PCP (Personal Contract Purchase) so she doesn't legally own it. As soon as you put the car is leased or you don't own it on insurance sites, they either wont cover you or the premium goes up.

The frustrating thing is they often don't tell you until you've put in all of your details.

I spent a frustrating couple of hours last night trying to find insurance. The price comparison sites don't help.

Any suggestions please?

InsideInsurance

Despite what websites say a fair number of insurers will take on leases or PCP etc. I know Admiral decline cover via their website but when I phoned them they were happy to take it on (after talking to their manager)

DesperateSusan

It may be worth speaking to a broker - they'll take the details once and the system will throw out the best deals.

I use Carole Nash for my car insurance.

Sue

motorguy

Surely this would affect all cars on hire purchase too?

daveyjp

Never had a problem. I suspect the OP is entering an incorrect response to a question as a PCP is not a lease.

xoleeb

I have a Personal contract hire car - initially i found the same problem - then i just phoned up AXA whos website wouldnt let me gt a quote and they accepted it without any problems - this year i went with Aviva whos website had all the right questions...did a comparison between leasing and owning - and no difference at all - exactly the same...

jaybeetoo

Thank you for all the replies.

Can I just confirm, if you have a car on PCP who is the legal owner?

I just found the answer:

"A finance company will retain ownership of the vehicle until the customer has met all the conditions of the agreement. The final payment under a PCP agreement is normally a larger, ‘balloon’ payment which must be paid by the customer to settle the outstanding balance.".

jaybeetoo

pgilc1 wrote: »

Surely this would affect all cars on hire purchase too?

Yes

The customer hires the vehicle from the finance company for an agreed period of time. The lender owns the vehicle until the finance is repaid in full. At the end of the agreement the customer has the option to take title to the vehicle from the lender and become the legal owner.

jaybeetoo

daveyjp wrote: »

Never had a problem. I suspect the OP is entering an incorrect response to a question as a PCP is not a lease.

Do you say that you are not the legal owner when getting a quote?

jaybeetoo

I went via Compare the Meerkat and have taken out insurance with LV=. They have no problem with me not being the legal owner (which is the case if you buy a car on PCP or HP).

MoreThan were useless - wouldn't insure me if not the legal owner. As 61% of personal new car sales in 2011 were PCP they are missing out on a lot of insurance sales OR people are saying they are the legal owner when they aren't.

motorguy

jaybeetoo wrote: »

Yes

The customer hires the vehicle from the finance company for an agreed period of time. The lender owns the vehicle until the finance is repaid in full. At the end of the agreement the customer has the option to take title to the vehicle from the lender and become the legal owner.

I think this is down to interpretation.

My brother had the misfortune of writing his car off. The insurance company did an HPI check on the car, found there was finance owing, cleared the finance and then paid the balance to my brother.

A huge percentage of cars are on finance, theres no way this is as big an issue as you're thinking.