insuring car after end of lease

silverwhistle

.. and tell them in writing!

facade

What happens if they turn up next month to collect their car, and all they find is a burnt out shell?

Won't they simply charge the leaseholder for the damage found upon collection?

Car_54

neilmcl said:

Car_54 said:

The contract seems pretty clear: you need to insure it.

The contract ends on 30 April, no terms beyond this are applicable.

The lease period may end on 30 April, but I don't think the contract does. The OP still has obligations, e.g. to hand the car back in good order, and to pay any outstanding charges. And, it appears, to insure the car.

Dr_Crypto

neilmcl said:

Car_54 said:

The contract seems pretty clear: you need to insure it.

The contract ends on 30 April, no terms beyond this are applicable.

Where does it say the contract ends on 30th April? The use of the car may end then but it doesn’t say the contact itself expires. 

The quoted term seems clear - until the car is collected the hirer must keep it insured. 

kmb500

Thanks for all the replies. I would have thought my contract ends on 1 May too... I'm reading the contract and it is not clear.

There is nothing in the terms themselves that mention dates; presumably because they are generic T&Cs that apply to lots of contracts the lease company has.

The only thing I can find that talks about dates is at the start, the definitions part, it says

"Term: A minimum period of hire of 36 months from the date when the vehicle is delivered or made available to you"

On the other hand, when I log in to my online account, it very clearly states:

Lease term: 36 Months

Contract start date: 02/05/2017

Contract end date: 01/05/2020

It's all well and good the contract saying "You must insure the car from the commencement date until the car is collected on our behalf following termination" - but if this goes past the end of my contract then surely this no longer applies.

Car_54

kmb500 said:

Thanks for all the replies. I would have thought my contract ends on 1 May too... I'm reading the contract and it is not clear.

There is nothing in the terms themselves that mention dates; presumably because they are generic T&Cs that apply to lots of contracts the lease company has.

The only thing I can find that talks about dates is at the start, the definitions part, it says

"Term: A minimum period of hire of 36 months from the date when the vehicle is delivered or made available to you"

On the other hand, when I log in to my online account, it very clearly states:

Lease term: 36 Months

Contract start date: 02/05/2017

Contract end date: 01/05/2020

It's all well and good the contract saying "You must insure the car from the commencement date until the car is collected on our behalf following termination" - but if this goes past the end of my contract then surely this no longer applies.

Despite what it says online, the contract doesn't end unless there's a specific date therein. Even after the hire period the contract still applies and you have obligations under it, e.g. to make the car available for collection, and to pay any damages etc.

If the contract really ended on 1st May then you wouldn't have to return the car or pay anything outstanding. How likely is that?

Herzlos

facade said:

What happens if they turn up next month to collect their car, and all they find is a burnt out shell?

Won't they simply charge the leaseholder for the damage found upon collection?

A good point - if they turn up a month later to collect the car, how do you prove to them (and likely a court) that it was in pristine condition when the contract ended and was since burnt out. More interesting is what happens if the leasing party no longer had a driveway on which to store the car - maybe they've coincided a house move with the end of the contract? Are they then responsible for storing it, too?

kmb500 said:

It's all well and good the contract saying "You must insure the car from the commencement date until the car is collected on our behalf following termination" - but if this goes past the end of my contract then surely this no longer applies.

If that's what it says it's pretty clear; you need to insure the car until it's collected. I'd be making an argument for continuing the lease and keeping use of the car in the mean time though, or getting specialist laid up insurance (if you can declare it as SORN). Insurance should be pretty cheap if the car isn't moving and is insured for fire and theft only.

kmb500

Herzlos said:

facade said:

What happens if they turn up next month to collect their car, and all they find is a burnt out shell?

Won't they simply charge the leaseholder for the damage found upon collection?

A good point - if they turn up a month later to collect the car, how do you prove to them (and likely a court) that it was in pristine condition when the contract ended and was since burnt out. More interesting is what happens if the leasing party no longer had a driveway on which to store the car - maybe they've coincided a house move with the end of the contract? Are they then responsible for storing it, too?

kmb500 said:

It's all well and good the contract saying "You must insure the car from the commencement date until the car is collected on our behalf following termination" - but if this goes past the end of my contract then surely this no longer applies.

If that's what it says it's pretty clear; you need to insure the car until it's collected. I'd be making an argument for continuing the lease and keeping use of the car in the mean time though, or getting specialist laid up insurance (if you can declare it as SORN). Insurance should be pretty cheap if the car isn't moving and is insured for fire and theft only.

They have asked me to send them a video of full inspection of the car and its mileage, just before 1 May. The hire will then end and I will not be allowed to use the car again.

As for cheap insurance, I'm struggling to find reasonable prices, getting quotes of around £100 for a month - for 0 miles and third party/fire/theft only.

Car_54

You need to speak to a decent broker. You need fire & theft (and accidental damage?). But why third party?

kmb500

Car_54 said:

You need to speak to a decent broker. You need fire & theft (and accidental damage?). But why third party?

Doesn't all car insurance have to be third party, unless it is SORNd?

Anyway I am not planning on insuring the car.

If I am not allowed to drive the car then clearly at that point, the contract no longer applies.