Transfer car from parent to son - Vehicle Tax / Insurance conundrum

SummerBreez

Hi, I have a tricky problem that I wonder if anyone can help with?

My dad wants to pass his car on to me. The insurance is due to expire soon and we originally planned that I'd just insure it in my name starting the next day. We are also considering transferring the car to me so that I become the Owner/Registered Keeper.

The issue is that Vehicle Tax expires the DAY BEFORE the insurance expires.

The Vehicle Tax is due to expire on 31st of the month - this seems like a good point to do the transfer. (Having talked to the DVLA I can transfer the car on the 31st, keep it off the road and then tax in my name on the 1st). 

However, the current Car Insurance on the car expires on the 1st - the day AFTER the Vehicle Tax expires.

I was planning to Insure in my name on the 2nd - with a different Insurer due to cost.

Does this cause problems with the current insurance - as the day before it expires we'll have changed the registered keeper?

I'm unsure of the best course of action / options. Any advice is appreciated, or suggestions for other solutions...

Thanks

Brie

I don't see that there's any problem.  You could go ahead and insure the car now just the same as if it was your dad doing so.  

sheramber

if your dad is not the registered keeper on the 1st then his insurance may be void so no cover if you were involved in an accident on the 1st.

mark1959

Keep the car off the road until the 1st, transfer ownership on that date, insure and tax it and then drive off. Legally. [one min past midnight will do][

SummerBreez

Thanks for the useful replies everyone!

@Brie - Thanks, Brie. Your comment prompted me to find out that two people can have seperate insurance on the same car, which I never realised!

What I'm concerned about is the current insurance which is in my dads name...

@sheramber - that's what I wondered. What effect transferring the keeper would have on insurance, even so close to the expiry. I wonder if the insurance company will apply a penalty or whether I'd have to cancel the policy or make a change to it (with associated charges)?

(Sorry everyone if that's a daft question!).

The accident side of it would be ok as the car would be kept off the road from 31st until at least the 2nd.

@mark1959 - Good call, but I think it's the same problem - the last day of the current insurance is the 1st so would transferring it on that day cause an issue with the insurer, as the policy is still valid on that day?

SummerBreez

From the replies and looking into it more I *think* the options are:

1.  (While keeping the car off the road) Transfer on 31st (then dad doesn't pay tax for the next month), then on the 1st, then insure in my name on the 1st or 2nd (with a different insurer).

        I wouldn't be driving, but we might have an issue with the current insurer due to the transfer.

2. Dad taxes it on the 1st, the current insurance expires that day. The next day on the 2nd we then transfer the registration, I tax it and the same day the new insurance (in my name with different insurer) starts.

        Dad would pay for a months tax that he won't use, but no issues with the current insurance.

Do either of these make sense?

Thanks again for the replies, it's appreciated.

SummerBreez

Oops.. the above post should have read:

1.  (While keeping the car off the road) Transfer on 31st (then dad doesn't pay tax for the next month), then I tax it on the 1st, then insure in my name on the 1st or 2nd (with a different insurer).

SummerBreez

Brie said:

I don't see that there's any problem.  You could go ahead and insure the car now just the same as if it was your dad doing so.  

@Brie - sorry, I should have said... if you mean leave the car with my dad as the owner, have him tax it (or I tax it with his reminder) and just insure the car with me as the driver when his current insurance ends - we thought of doing this but he is keen to transfer the car to me.

As an aside - for general info - probably worth saying that insurance quotes for me have generally been cheaper (in some cases a lot cheaper) if I am the registered keeper/owner, and in fact some insurers didn't even quote if I wasn't.

HHarry

Option 3.  Your Dad doesn’t renew the tax.  It sits on private property on the 1st.  On the 2nd he transfers it to you, you tax & insure it.

Nothing is going to happen if it sits untaxed on your drive for 1 day.  Especially as the tax will be backdated to the 1st when you buy it.

GrumpyDil

You are definitely overthinking this. 

Do the transfer on the 31st. You tax and insure it from the 1st.

Let your dad's insurance run out. 

Bigphil1474

Agree with above. Just think of it as him selling it to you. It happens every day. As soon as you/dad notify DVLA of a sale , they will cancel tax and a few weeks later you will get a new V5. With insurers asking for registered keeper - just tell them you will be from the 1st. Nobody buying a car is usually the registered keeper before buying the car.