Car Insurance - PCP finance

ian16527

Just bought a new car on PCP finance and went to change my insurance over. Question is - legal ownership question - I know I dont own the car until its fully paid up, but on the dropdown box, there are no PCP options, only lease and other. I assume if its on hp it would be the same but there is no option for this. I am with Quote me Happy so no telephone helpline to call - sent them an email but not sure how long they take to reply.
May have to cancel and go with someone else but will be charged a £56 fee

sparry951

I had the same, changed my car on Friday to one on PCP (which i've never had before) and phoned up to enquire whether this was an issue with the insurance. I'm with Esure and the person i spoke to didn't seem to have a clue when i said it would be on PCP, just kept asking whether i would be the legal owner (which technically i'm not) but i would be the registered keeper. Given that apparently two thirds of new cars are now sold on PCP this can't be a new issue.
Another point with Esure is that they charged a £25 admin fee because i called to make the change, had i done it via the website it would have only been a £15 admin fee

[Deleted User]

I bought a car on PCP, put myself as the owner/RK and never had any issues. If you insure your house with a mortgage, do you say you are a home owner or not...

Sandtree

Deleted_User said:

If you insure your house with a mortgage, do you say you are a home owner or not...

But assuming you dont have an islamic mortgage you are the legal owner of a property with a mortgage on it; the mortgage provider just has a 1st ranking charge against the property.

In theory with an islamic mortgage you rent the property from the bank and they gift you the house at the end but don't know how that works with the land registry etc and avoiding stamp duty becoming due again. 

rs65

Deleted_User said:

I bought a car on PCP, put myself as the owner/RK and never had any issues. If you insure your house with a mortgage, do you say you are a home owner or not...

Home insurance often asks - homeowner or homeowner (mortgaged).  Car insurance doesn't seem to differentiate
My last 5 cars have been on PCP and I have always said I am the owner and keeper

[Deleted User]

Sandtree said:

Deleted_User said:

If you insure your house with a mortgage, do you say you are a home owner or not...

But assuming you dont have an islamic mortgage you are the legal owner of a property with a mortgage on it; the mortgage provider just has a 1st ranking charge against the property.

In theory with an islamic mortgage you rent the property from the bank and they gift you the house at the end but don't know how that works with the land registry etc and avoiding stamp duty becoming due again. 

With PCP I am the legal owner of a car with a loan on it; the loan provider just has a 1st ranking charge against the car.
It's the same either way - if you pay your monthly payments, it's yours. If you stop payments on the car, they take it away from you, if you stop payments on the mortgage, the bank can evict you.

Sandtree

Deleted_User said:
With PCP I am the legal owner of a car with a loan on it; the loan provider just has a 1st ranking charge against the car.

Well this is a matter with a lot of confusion and I'd guess it may come down to individual agreements... there are a lot of well known websites out there that states the finance company is the owner until the balloon is paid.  I cannot remember the situation with my own but know for insurance I declared the finance company as the owner but didn't get a letter of permission etc for taking it abroad as some recommend when your not the owner of the car.

ian16527

Thanks for your replies.
I think in previous times I have just put in I am the legal owner. I have had a claim on one of these, and they never asked about ownership. But with cars getting more expensive and reading through the contract I was a bit worried.
Anyway the correct answer is - Lease - Private - from the insurance company