PCP and insurance

ian16527

Posted this on insurance board yesterday but no response so maybe more people on here will have come across this.

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.( nothing as of yet - 2 days)
May have to cancel and go with someone else but will be charged a £56 fee

ontheroad1970

who has the V5?  I suspect it will be you. Therefore effectively you are for these purposes the owner just as anyone else with a HP agreement would be.

Car_54

Is it a lease? - No. So it must be "Other".

neilmcl

ontheroad1970 said:

who has the V5?  I suspect it will be you. Therefore effectively you are for these purposes the owner just as anyone else with a HP agreement would be.

The person on the V5 is the registered keeper, not necessarily the legal owner, they are two separate entities. The V5 even states that this isn't proof of ownership.

ontheroad1970

neilmcl said:

ontheroad1970 said:

who has the V5?  I suspect it will be you. Therefore effectively you are for these purposes the owner just as anyone else with a HP agreement would be.

The person on the V5 is the registered keeper, not necessarily the legal owner, they are two separate entities. The V5 even states that this isn't proof of ownership.

Don't be obtuse.  I am fully aware of that.  Read the sentence properly.  "for these purposes".  This is the main difference between Lease and PCP.  With Lease, you will NOT have the V5c.  With PCP and other HP, it is usual for you to be the holder of the V5c, and therefore the registered keeper with DVLA.  

neilmcl

ontheroad1970 said:

neilmcl said:

ontheroad1970 said:

who has the V5?  I suspect it will be you. Therefore effectively you are for these purposes the owner just as anyone else with a HP agreement would be.

The person on the V5 is the registered keeper, not necessarily the legal owner, they are two separate entities. The V5 even states that this isn't proof of ownership.

Don't be obtuse.  I am fully aware of that.  Read the sentence properly.  "for these purposes".  This is the main difference between Lease and PCP.  With Lease, you will NOT have the V5c.  With PCP and other HP, it is usual for you to be the holder of the V5c, and therefore the registered keeper with DVLA.  

There's nothing obtuse about it. The OP asked specifically about legal ownership with regards to insurance, I correctly pointed out that the V5 doesn't provide this information, it only gives the registered keeper details. The fact that you have it in your possession means nothing in terms of ownership.

Therefore your statement "effectively you are for these purposes the owner just as anyone else with a HP agreement would be" is totally incorrect.

facade

As there are millions of cars on PCP that have to be insured, and the majority of the people with a PCP car think that they are the owner, I'd have thought that in the absence of a box for PCP ticking the "I am the owner and registered keeper" would be something any insurer would expect.

Worth checking with them I agree, but it can't be the first time they have been asked to insure a car on PCP

JamoLew

Car_54 said:

Is it a lease? - No. So it must be "Other".

Already answered and imho correctly

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