Huge Mess - Finace and car insurance

simple_ways

Can someone help please...

My friend bought a car on finance last year. His GF fell pregnant almost immeditaely and they decided to move in together which meant he couldnt afford to pay for the vehicle. He made agreement to give me full access to the vehicle as long as i paid his installments and lump sum at end of term. at that point he woud transfer car to my name.
i then insurred the vehicle on my name and i think (cant recall exactly) i said i was the legal owner and keeper of the vehicle or that i will be.
ive now had an accident and i dont know if the insurance will pay me.
can someone advise where i stand please.

Inner_Zone

Read the insurance documents including T&C's, which of course you did when you took it out didn't you?

simple_ways

No i didnt to be honest. even now i can make very little sense if it.

my concerns are:

a) Does my friend have option to give me full use of vehicle.
b) By stating i am the legal owner of the vehicle / keeper of the vehicle, will my inusrance now be invalidated.
c) do i tell the insurance company of our arrangement ?

EmmyLou30

a) The finance company have an interest in the car so he can't just 'hand it over' to you for keeps no, but he can let you borrow it indefinitely like any car owner can.
b) To transfer the registered keeper of the car to you, you would have filled out the V5 form to register the change of keeper - did you? When you insured the vehicle you have to say if you own the car. Your insurance may entitle you to drive another car not owned by you (like borrowing your mates car) but this usually only covers you third party (so what you do to others, not the damage to the car itself).
c) Unless you want to commit insurance fraud and potentially have a cancelled policy on your record for eternity it always pays to tell them the truth!

All in all this sounds like a monumental mess.

Warwick_Hunt

simple_ways wrote: »

Can someone help please...

My friend bought a car on finance last year. His GF fell pregnant almost immeditaely and they decided to move in together which meant he couldnt afford to pay for the vehicle. He made agreement to give me full access to the vehicle as long as i paid his installments and lump sum at end of term. at that point he woud transfer car to my name.
i then insurred the vehicle on my name and i think (cant recall exactly) i said i was the legal owner and keeper of the vehicle or that i will be.
ive now had an accident and i dont know if the insurance will pay me.
can someone advise where i stand please.

How badly damaged is the car?

Unless it's a write off they won't ask for the V5.

Herzlos

You could argue that you are the owner but not the keeper. I've done similar in the past (insured a car with my dad as the keeper on the V5 and it made no real difference to premium). The difficulty may come from the finance agreement - is he allowed to let you use the car?

simple_ways

i agree.. Mess.

a) i guess he gave me indefinite use until the vehicle was paid for at which point he would transfer ownership.
b) the vehicle is still in his name for reasons mentione in (a).
c) will they cancel my insurance policy based on the fact that i didnt send of the log book.

simple_ways

warwick...

they have deemd the vehicle a write off.

and they are aware my friend is the registered keeper.

they are not however aware of our arrangement, which is i will be the owner once the finance is paid off. So i have full us of vehicle until finance is paid off and then i become owner, as i will be paying installments and lump sum at the end of agreement.

simple_ways

Herzlos

i believe he is not allowed to sell me the vehicle ( ie take lump sum for it and not pay the finance off) but i assume nothing stopping him from giving me full acess and allowing me to pay the installments.

note: i was paying him monthly and then he was paying finance company.

BeenThroughItAll

simple_ways wrote: »

Herzlos

i believe he is not allowed to sell me the vehicle ( ie take lump sum for it and not pay the finance off) but i assume nothing stopping him from giving me full acess and allowing me to pay the installments.

note: i was paying him monthly and then he was paying finance company.

You've made a lot of assumptions along the way without reading any of the terms and conditions. Those assumptions could end up costing you a lot of money.

I very much doubt the finance agreement allows your friend to rent out the finance house's asset to some random mate of his to pretend is his car.

Herzlos

What kind of finance agreement is it? A loan? HP? PCP?