name on log book - complicated thread

caris

Hi

I am asking this question on behalf of my youngest daughters boyfriend.

He had a car accident yesterday, he has insurance (shown us his documents), however he got the car from a car dealer who lets you pay a deposit on the car and then you pay the car dealer either £100 or £200 a month depending on how much the car is, until the balance is paid off. The car dealer keeps the log book until you have made the last payment on the car and then it gets transfered into your name, any road tax that may become due on the car in the mean time, the car dealer gets the tax disc and you just hand over the money for it, you are responsible for the insurance and he was told by the car dealer to insure the car has if it was his, now we are left wondering if the insurance will still accept his claim has the log book is not in his name, does this make a difference?

We have not been able to answer his question to us as we don't know the legalities.

We hope that someone may have some answers for us.
Thanks inadvance
caris

chilli_dog

Interesting post...............bump

derrick

Would have thought that "keeper" would be daughters boyfriend, and "owner" would be dealer until final payment!

raskazz

A lot of insurers would not offer cover in these circumstances, if his is one of those you could be looking at a void policy.

Was the policy set up online or over the phone? If it was over the phone, obviously the wording of the ownership question and his answer will be crucial.

daveyjp

Insurance will ask 'who is the registered keeper' or 'is the vehicle registered in the proposers name'. The answer given to this will be crucial.

BTW the whole thing sounds well dodgy to me. You pay a dealer until you have paid off the loan, but he keeps the V5c. Does he have a written credit agreement? What if the dealer drops dead?

raskazz

daveyjp wrote: »

Insurance will ask 'who is the registered keeper' or 'is the vehicle registered in the proposers name'. The answer given to this will be crucial.

BTW the whole thing sounds well dodgy to me. You pay a dealer until you have paid off the loan, but he keeps the V5c. Does he have a written credit agreement? What if the dealer drops dead?

Yes, arrangements like these reek of dodginess. I saw a case recently where the car salesman took payment in full for the car, but kept the V5 for 6 months - apparently so the purchaser could not resell the car!

iceicebaby

As long as he declared at the time of the quote that the dealer was the registered ownwer and they have quoted on that basis then he should be ok

soapboxfury

If the dealer has kept there name on the V5c then they are breaking the law. All the V5c is isa record of the registered keeper (ie the person responsible for the legalities of the vehicle) not the owner. This was bought home to us with fleet hire vehicles a few years ago. DVLA regs need the person responsible for the vehicle not the owner.

IF the keeper told the insurance company that he was the registered keeper and it is found that is untrue then he could have a fight on his hands

Most IC's only pay out to the registered keeper of the vehicle unless it is on a policy that specifies different