car insurance

rachelransom

My sister cant afford to buy a car. Can we get finance in our name for a car for her. How will the insurance work??
We live opposite ends of the country

Spicy_McHaggis

rachelransom wrote: »

My sister cant afford to buy a car. Can we get finance in our name for a car for her. How will the insurance work??
We live opposite ends of the country

The finance side maybe more problematic than the insurance.

They may want the car in your name and insured by you.

Can you not insure the car with her as the main driver?

PeacefulWaters

Don't even go there.

If she doesn't pay you lose money and fall out with your sister.

Terrible idea.

forgotmyname

If she fails to pay are you willing to just give her the car and money and pay the finance youself?

If the cars in your name, tickets and fines will come to you.

There are threads on here where family members have failed to keep up the payments and left the ones that helped them with large bills.

iolanthe07

I agree with the others. Don't take out finance on behalf of a friend or relative unless you're happy (and can afford) to lose it. There are loads of threads about this on the debtfreewannabe and loan boards.

rachelransom

My sister is disabled and NEEDS transport, her ex partner left her with massive debts which means she cannot get finance.
Please while I appreciate the concerns you all have, i would not hesitate to give her the money to buy a car if i had it.
So back to the original question will she be able to insure a car registered in my name
She has no claims she can use but i do not. Also as we live 600 miles from each other it would be hard to say we shared it. Insurance company want to know who the main driver is?

TadleyBaggie

Motobility?

shaun_from_Africa

rachelransom wrote: »

So back to the original question will she be able to insure a car registered in my name

Probably , but she might not be able to do it online.
Most of quotes I looked at when renewing my insurance online had the usual question of who owns the vehicle and the options given were generally:
The policyholder
Spouse/partner
lease company
parent
company.


I'm sure that an insurance broker could arrange a suitable policy or the insurance companies themselves if your sister was to phone them up and explain.

forgotmyname

Yes they will want to know who the main driver is. And if you get finance then they may insist in the car being in your name until paid in full.

So she will need to insure it as not being the owner or registered keeper. That rules out most of the comparison sites etc. They usually assume your the keeper and owner.

Insurance may cost more.

If you insure it in your name and there is a claim they will wonder why the car is hundreds of miles away from yours and could refuse a claim. So you need to be truthful in the owner/keeper and main driver.

forgotmyname

If she cannot afford it how will she pay you back whilst running the car? Who pays for repairs and breakdowns?

Aretnap

Yes, it's quite possible for her to insure a car which is owned by/registered to somebody else. Not all insurers will be happy with the arrangement, but some will be providing everything is declared accurately. She'll have to make sure that she reads the assumptions and answers the questions carefully, particularly the assumptions/questions about who is the owner/registered keeper (you, presumably), who is the main driver (her) and where is the car usually kept overnight (her address). If the price comparison websites make that process tricky try going directly to some insurer's websites, or phone them up and that way she can speak to a real person and be sure that she's describing her situation accurately.

Another option is for you to insure the car in your own name, again making sure you declare the fact that she will be the main driver and that the car will usually be kept at her address rather than yours. Most companies would not let her use her no claims bonus that way though there are one or two exceptions - RAC spring to mind as an insurer where the no claims bonus follows the main driver rather than the policyholder so try them.