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Insuring a vehicle you don't own

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Mobius1 | 12:29 Fri 24th Aug 2012 | Motoring
6 Answers
I'm looking at a lease deal offered by my employer for a new car that will be paid for via salary sacrifice. The deal includes free insurance, road tax, servicing and repairs. Since the vehicle will is technically a fleet vehicle, it will be insured for me but not as a personal policy.

I'm 26 and have built up 7 years NCB on my car insurance. I think I'm right in saying that if an individual doesn't personally insure a car for a certain period i.e. 3 years, that when and if they do come to insure a vehicle again, they can no longer claim the NCB and must start again.

The lease term is 3 years after which I will have the option to purchase, however I'd have to insure it personally and I'm concerned that it'd cost me an arm and a leg to insure even when I'm 29 if I hadn't got any NCB to fling about.

So, I'm thinking of giving my current (owned) car to my Mum. She will, of course, insure it so she can drive it. Would it be possible for me to insure her car as well (even though I won't then technically own it) after, say, a couple years of this lease so as to maintain and build my NCB? Is it legal? The car would already be insured by the legal owner, I don't want to be a named driver and push her policy price up, but separately insure it myself. If that makes sense?


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I was in a similar situation when I was given a company car way, way back in 1980. I then had company cars until I retired in 2000. During this time my wife owned her own car and insured it with herself as the main driver an me as the other 'named' driver. All absolutely correct and above board. When I retired and bought my own car I asked my company for a letter to the effect that I had a blemish free driving record, etc that I could give to my insurance company. For simplicity, I chose the same insurer that my wife was with and I got a (relatively!) generous no-claims discount on my "new" insurance.
This can't be an unusual situation and I can only suggest that you ask your employer and your insurance compay how they see the situation.
When my DH went from company car to private car, he got a letter from his company (and IIRC their insurers) stating that he had been claim and accident free for all his years as a company car driver. He got the full no claims that he was entitled to. Mind you this was some tears ago. You could ask your current insurer what their current policy is?
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Yeah, I'm aware of the 'covering' letters that the business will give you to advise that no claims have been made. I'm a bit dubious of them though. My partner had a company car for over 3 years and upon purchasing a car and insuring it privately, the covering letter made no difference and he was forced to start again.

The letter was from BT and said "Person X has been insured on a company policy for Y number of years. Had X been insured on a private policy, no claims will have been made on the policy for the length of the insured period".

Like I say though, it made absolutely no difference and he had to start again.
Give a ring to a broker like Swinton.

Tell them that when you need insurance you will come to them, and in return could they advise you on your best course of action now.
I was on a motability (that has taken ages to write, bloody auto correct) policy for twelve years when my mil was alive, when I got my own car after she died the insurance sent me a letter to say there had been no claims on the policy and I was given full no claims by my insurance company.
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It sounds as though my partner just got unlucky (or probably didn't do something right knowing him). I'll give my current insurer a call and then maybe a few others to see what they say and what their stance on it is.

Out of interest though, does anybody know if you can legally insure a vehicle that belongs to someone else in your family on separate policy - in case all else fails?

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