Insurance question - multicar/driver

BOWFER

Where to start with this one...okay....
Daughter has her own (bought) car in her name, the insurance policy is also in her name.
That car will be getting sold.
I've just taken on a PCP deal for her (she wouldn't get the credit), so I now 'technically' have two cars.
The finance company will want the car insured in my name (I think), but she's going to be the main driver.
This must be relatively common, parents taking on cars for kids, but I can't get my head around the insurance connotations.
Any advice gratefully received.

Ebe_Scrooge

Just put her down as the main driver when you fill out the insurance application.  Pretty much every insurance form I've seen asks "Will the policyholder be the main driver?".  I guess there may be the odd ones that don't like it, but it's usually no issue at all.

Sandtree

Is the finance company aware that the car isnt for you? Most are ok with spouses doing this but not anyone else.

She will ideally need to insure the car in her name, though some won't quote with the finance company owning the car and a parent being the registered keeper. 

If the insurance has to be in your name then you are going to have to revert to the phone to find an insurer that allows you to declare a main driver as most default it to be the policyholder and not all insurers (not even sure its the majority) allow you to specify it as someone else.

BOWFER

Sandtree said:

Is the finance company aware that the car isnt for you? Most are ok with spouses doing this but not anyone else.

The dealer said it's very common for them to have parents buy their kids cars via PCP, they were completely fine with it.

Jenni_D

The dealer isn't paying the finance, nor are they liable for any insurance requirements or issues that may arise, so I'd take the dealer's words with a hefty dose of salt.

BOWFER

Jenni_D said:

The dealer isn't paying the finance, nor are they liable for any insurance requirements or issues that may arise, so I'd take the dealer's words with a hefty dose of salt.

It's very evidently a common scenario, so it must be do-able somehow.

Sandtree

BOWFER said:

Sandtree said:

Is the finance company aware that the car isnt for you? Most are ok with spouses doing this but not anyone else.

The dealer said it's very common for them to have parents buy their kids cars via PCP, they were completely fine with it.

The dealer were ok with it or the finance company?

A quick google shows there are lenders that are comfortable with it but many aren't... having had plenty of experience of dealer sold insurance I'd certainly say their attitude is generally more lax and they take a "what the finance company doesn't know cannot hurt them" type attitude if it gets them a sale. 

tr7phil

My daughter insured my wife's car in her own name with my wife and me as named drivers for a year before she bought her own car, this was with Go Girl, but it was set up through Compare the Market so I can't see insurance being an issue for you/her.  I don't know anything about the finance side of things though.

BOWFER

Sandtree said:

BOWFER said:

Sandtree said:

Is the finance company aware that the car isnt for you? Most are ok with spouses doing this but not anyone else.

The dealer said it's very common for them to have parents buy their kids cars via PCP, they were completely fine with it.

The dealer were ok with it or the finance company?

I'll check the wording of the finance documents when they come through.
I also lease a car which is mainly driven by my wife.
The insurance wording on that is "you must comprehensively insure the car", not that the policy must specifically be in the name of the person leasing.
So me leasing it, but the insurance in my wife's name, is fine.

Sandtree

BOWFER said:

I also lease a car which is mainly driven by my wife.

Almost no one has issues with spouses financing each others vehicles as mentioned, once you get more remote the less comfortable finance companies tend to be until you get those doing guarantor based finance 

BOWFER

Sandtree said:

BOWFER said:

I also lease a car which is mainly driven by my wife.

Almost no one has issues with spouses financing each others vehicles as mentioned, once you get more remote the less comfortable finance companies tend to be until you get those doing guarantor based finance 

Yeah, most seem comfy with kids under 21 living in the same house as well.
I may just drop the PCP, get a personal loan and then I can do what I bloody like with it.