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Insuring a car on PCP Legal Owner question as huge price difference

18
Found 27th Feb
When insuring your car and its on PCP what do you put down as legal owner as I'm trying to get a few quotes for my daughters car which is on PCP. I know about registered keeper (in her name) but as this is on PCP she is not the legal owner (same as finance, not owner until fully paid) so when I put not the legal owner it goes up by an extra £1200 however the drop down box only asks who the legal owner is and there is nothing about finance and PCP just says "other, friend, relation and lease private or commercial" so I rang Hastings and spoke to two people neither knew what PCP was which wasnt a good start. When I explained what it was one went away and came back and said put it down as lease which it isnt as lease is totally different and I know you dont get no claims on lease cars as the car is not yours ever, so gave up.

I can imagine there are a lot of PCP cars out there not properly insured as you would automatically put down yourself as the legal owner, I guess its the same with HP?
On the Parkers web site it also states on PCP you are not the legal owner.
parkers.co.uk/car…ce/

Also another question, she is a nurse so has one permanent place of work but she is also a nurse in the Army reserves so doesnt have a permanent place of work for that as she has to drive to other units in the UK so would anyone who has a similar scenario put it as business insurance or just SPD&C

thanks
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18 Comments
Think I have found the answer whilst getting a quote from AXA

Legal Owner What does this mean?

The legal owner is the person or company that bought and paid for the car. It's not always the same as the registered keeper.

What if the car is leased, or bought with a finance agreement?

If the car is leased, the hire company usually remains the legal owner. If a car is bought with a finance agreement, the finance provider often remains the legal owner until the car is paid for in full. Please check the terms and conditions of your contract.

and when I put "other" as legal owner it refuses quote and then explains why

What does 'Privately leased' mean?

'Privately leased' means the policyholder has a finance agreement with the car's legal owner (such as a garage or finance company).

So the answer to my first question is, it has to be insured as 'Privately leased' now to find out about my second question
Edited by: "caverncity" 27th Feb
You could just put it down as your daughter it should be fine, as PCP is literally her buying the car anyway
Edited by: "Manny50" 27th Feb
Legal Owner on PCP/HP/Lease deal is the Lease Company
Legal Owner if you have bought with a personal loan (bank or other institution) is your daughter.
Legal Keeper is whoever is on the logbook.( V5c registration document.)
Edited by: "airbus330" 27th Feb
For the second question, put it down as business Class 1 usage. It shouldn’t be any more than SPD&C. It covers you driving to and from different places of work which is what she’s doing, unless the Army aren’t paying her for her time. Make sure you put that down as a secondary job if she is being paid for it though.
Cakeboy798 m ago

For the second question, put it down as business Class 1 usage. It …For the second question, put it down as business Class 1 usage. It shouldn’t be any more than SPD&C. It covers you driving to and from different places of work which is what she’s doing, unless the Army aren’t paying her for her time. Make sure you put that down as a secondary job if she is being paid for it though.


Yes have been putting that down, as I told her as she travels from one barracks to another, (very rare but does still do it), its not one permanent place of work so best if she did put business use to be safe. It went up about £90 as she is a young driver (in a Mini Cooper)
caverncity16 m ago

Yes have been putting that down, as I told her as she travels from one …Yes have been putting that down, as I told her as she travels from one barracks to another, (very rare but does still do it), its not one permanent place of work so best if she did put business use to be safe. It went up about £90 as she is a young driver (in a Mini Cooper)


Fair enough for a young driver, I was taking me as an example being 38 with a full no claims bonus.
A PCP is a personal contract purchase (you legally own the car in an insurance context) however the loan amount (depreciation) is secured against the vehicle. If you chose to pay the residual value then you pay off the balance and the asset no longer has any finance secured on it. It is different to leasing where you essentially rent the vehicle.

Don’t forget to get gap insurance!
Edited by: "cmdr_elito" 27th Feb
I concur with cmdr_elito also, I asked the question years ago also with a couple of insurance companies and they had said the same, the loan amount was secured against the vehicle. On a different note ensure she has GAP Insurance taken out also. Dear forbid but if the car got deemed a write off, they insurance company pays market value and you are left with no car and still the payments. GAP bridges that "gap" to leave it where you are free to walk away and start again. You can also get varying types of Gap and for example I have Return to Invoice gap where it actually will bridge the gap between what they pay out and what I paid for the vehicle, more or less leaving it where you should be in the position to buy the same car again.
Another way to word it is, "who do I pay if it gets written off"!
Right out of left field - I know - Would it not be better to actually ask an insurance company rather than seek opinions on this site ? Daft I know - but I have seen some of the opinions on this site
Edited by: "rogparki" 27th Feb
I did as in my opening post. They, two of them didn't know what a PCP was then after asking said put it down as lease, that in effect increased the premium by £1200. After checking AXA after my post it had to go as privately leased with no change in premium. Parker's also said you have to put it down as not legal owner.
caverncity23 m ago

I did as in my opening post. They, two of them didn't know what a PCP was …I did as in my opening post. They, two of them didn't know what a PCP was then after asking said put it down as lease, that in effect increased the premium by £1200. After checking AXA after my post it had to go as privately leased with no change in premium. Parker's also said you have to put it down as not legal owner.



The two I've been with on PCP (who told me to put my own name down) was Chaucer Direct (now called -Geoffrey insurance - been with them 6 years now) and also Abbey (local one in Northern Ireland but policy was underwritten by Zenith)
caverncity2 h, 5 m ago

Yes have been putting that down, as I told her as she travels from one …Yes have been putting that down, as I told her as she travels from one barracks to another, (very rare but does still do it), its not one permanent place of work so best if she did put business use to be safe. It went up about £90 as she is a young driver (in a Mini Cooper)



For that one the way It was always described to me was "if you can claim money for the travel it needs to be business use" In fact in my company if anyone puts in a mileage claim for personal car use for work they must provide evidence of insurance (well techincally unless it is, they should not have used it in the first place!). Though I was the same as Cakeboy79, didnt change mine premium when I had to start to change over and declare (only cos I hate driving the rubbish cars you end up getting if not and really hate having to use a car you not used to driving on a long journey)
If it's PCP, you're the owner.
"I know you dont get no claims on lease cars as the car is not yours ever, so gave up."


Wrong, if you are paying for the insurance you do get no claims.
markvirgo7 m ago

"I know you dont get no claims on lease cars as the car is not yours ever, …"I know you dont get no claims on lease cars as the car is not yours ever, so gave up."Wrong, if you are paying for the insurance you do get no claims.


The cars with free insurance I meant (especially mobility)
Edited by: "caverncity" 27th Feb
terriclarkfan:
If it's PCP, you're the owner.

How can you be the owner if you don't own it

parkers.co.uk/car…ce/
PCP the car is the value item, if you dont want the car you hand it back and it covers the loan. If you have an accident and the cars wrote off and you dont have insurance, you still have to pay the PCP as you dont have the car secured against the loan, so youd be in debt with the PCP provider

put yourself down..
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