Huge Mess - Finace and car insurance

simple_ways

AdrianC wrote: »

You really need to get hold of the paperwork, and go through it. If you're not sure of anything, re-post here.

This has the makings of a right ol' mess - but it MIGHT not be an issue. The devil is in the detail.

what should i be looking out for ?

rudekid48

simple_ways wrote: »

what should i be looking out for ?

The fact that the Gap policy has a different policyholder to the motor insurance policy could well be one of your banana skins.

Many Gap policies have a clause authorising them to deal with the primary motor insurer directly when agreeing a settlement figure following a write off. That is not going to be possible if they both have different policyholders. There may also be terms in the Gap policy stipulating that your friend must hold comprehensive cover on the vehicle in his own name.

You really need to start getting hold of paperwork and establishing the facts. All people here can do is point out potential pitfalls - until you have factual detail it's all ifs, buts & maybes.....

There is also the situation where your insurer would normally pay the settlement amount to the Finance company directly - again, they will not be able to do this as the finance is not in your name - meaning that you have no insurable interest.

As others have said, this could start to get really messy. You must start to get the facts together - hearsay will not help you if this starts to unravel.

AdrianC

simple_ways wrote: »

what should i be looking out for ?

For a start, what type of finance it is...

angrycrow

Sorry but once your insurers contact the finance company whose details they will get from HPI, and find out you do not own the car the house of cards you have built will tumble down very quickly.

When taking out the policy you were asked to honestly declare you were the owner and registered keeper of the car. Unfortunately you are neither. Your friend did not have clear tittle to sell the car so you can't even argue you were purchasing it on instalments so no insurable interest exists.

Then the finance company are likely to start asking why your friend does not have comprehensive cover on the car which is a term of most finance companies.

Gap insurance are very unlikely to pay out because your friend had not insured the car and had given it away.

I predict final outcome is your insurance voided so no payment for the car and sky high future premiums. Finance company pursuing your friend for the full balance of the finance agreement.

What you should have done was to get the owner to insurer it whilst declaring you as the main user and that the car would have been at your address.

sheramber

Some insurance companies will not insure a car in your name if you are not the registered keeper, unless the registered keeper is a family member.

Hastings Insurance is one.