Free Drive Away insurance from Dealership

[kinger8938]

Anyone used this service provided when collecting a car?

Picking mine up Thursday. Usually I transfer my current one over prior to collection but long story short still want some insurance on that car as it's up for sale privately and the extra 5 days could be all we need before it's sold for potential test driving and such.

Any catch or reason not to take the 5 day cover from the dealer? Does it come to an end by itself or does the user need to ring up and cancel before it rolls in to some sort of longer term paid insurance after the free period provided?

Thanks in advance.

Also side note, is PCP considered a Lease? On insurance when putting who owns the car, obviously it's owned by the PCP provider (in my case Lloyds) surprised there's still not just "PCP" listed as an option, seems a bit vague.

People I know put themselves as the owner which I don't think is correct in this situation. Obviously named driver on the log book sure, but not Owner

 

[dlockers]

You legally own the car in a PCP scenario, however the finance company have a declared interest. Furthermore you are the registered keeper so you name yourself. It isn't a "lease" but the word lease has become somewhat interchangeable with PCP, PCH, 'proper leasing', long-term rental, whatever.

Driveaway cover is perfectly fine but just be aware the excess and coverage may not be up to your normal policies standards.

 

[kinger8938]

You legally own the car in a PCP scenario, however the finance company have a declared interest. Furthermore you are the registered keeper so you name yourself. It isn't a "lease" but the word lease has become somewhat interchangeable with PCP, PCH, 'proper leasing', long-term rental, whatever.

Driveaway cover is perfectly fine but just be aware the excess and coverage may not be up to your normal policies standards.

Thanks for the reply, I shall look at their specifics regarding driveway.

Articles like this seem to claim otherwise?

I remember being concerned about it when I got my last car insured a few years back

https://www.parkers.co.uk/car-finan...e of the most common,but not the legal owner.

 

[dlockers]

Thanks for the reply, I shall look at their specifics regarding driveway.

Articles like this seem to claim otherwise?

I remember being concerned about it when I got my last car insured a few years back

https://www.parkers.co.uk/car-finance/advice/pcp-insurance/#:~:text=One of the most common,but not the legal owner.

Happy to eat my words on the legal owner bit; but I'd wager that Parkers article was written before the internet. General par for the course is you click through as registered keeper and primary driver, and should the worst happen the insurer will clear the finance companies owed monies before cutting you a cheque to buy your new car. I've never thought twice on insuring any of my cars under PCP as you have called out here - interesting though!

 

[kinger8938]

Happy to eat my words on the legal owner bit; but I'd wager that Parkers article was written before the internet. General par for the course is you click through as registered keeper and primary driver, and should the worst happen the insurer will clear the finance companies owed monies before cutting you a cheque to buy your new car. I've never thought twice on insuring any of my cars under PCP as you have called out here - interesting though!

I'm probably definitely over thinking it. I'm sure if anything ever happened, it would be easy to explain rather than a cause to void any cover.

 

[G-Man]

Most actual PCP agreements (yes, the small print) will tell you the finance company is the owner of the vehicle.

 

[kinger8938]

Most actual PCP agreements (yes, the small print) will tell you the finance company is the owner of the vehicle.

Indeed, until that balloon is paid.

Just wondering what people here select when insuring their PCP vehicles now. It seems unclear or a grey area, get a lot of mixed responses.

There should just be a PCP option under the "who owns the car" drop down box

 

[G-Man]

My last couple of policies have me as the owner even though its on PCP, partly because I didn't actually think about it at the time and partly (for the latest change in car) because to select a finance company as the owner I needed to know which company it was (which at the time I didn't know until the paperwork came through).
Will probably fix it on renewal next month.

Technically unless you pay for your car using cash or an unsecured bank loan or something its always going to be owned by a lease company or something anyway I suppose. Even old school hire purchase isn't yours legally until its paid.

 

[Jimbeam3678]

When I got my car on a pcp In my paperwork it specifically said for insurance purposes you are classed as the owner. Asked the dealer to confirm as well which he did. This was all 3 years ago.

 

[kinger8938]

When I got my car on a pcp In my paperwork it specifically said for insurance purposes you are classed as the owner. Asked the dealer to confirm as well which he did. This was all 3 years ago.

The plot thickens!

Thanks for the reply I'll have a deep read of mine

*Edit
Mine has loads of paragraphs about how I don't own the car etc but nothing relating to insurance in that regard. I'll ring my bank I think, just to see what they would suggest

 

[Jimbeam3678]

The plot thickens!

Thanks for the reply I'll have a deep read of mine

*Edit
Mine has loads of paragraphs about how I don't own the car etc but nothing relating to insurance in that regard. I'll ring my bank I think, just to see what they would suggest

You could tackle it from the other angle when you have decided on the insurer just ring them and ask them to confirm in writing or verbally taking name etc.

 

[jpaul]

guess you don't invoke your existing no claims bonus with the drive away insurance - whilst continuing to use it on the previous car

 

[kinger8938]

I rang Lloyds (my PCP provider) the person I was speaking too wasn't 100% sure so went away for like 5 minutes to find out and came back to say you should select Lease company for the owner in this situation.

I guess PCP is a form of lease then, it's all a bit of a mess tbh

Some comparision sites aren't even as clear cut to offer that as a choice

 

[kinger8938]

Compare the market offers Leased Company or Leased Private

I assume it's Leased Private as I've done it on my own back not through a workplace

 

[Kenai]

You'd think that given roughly 90% of new car purchases are supposedly financed in some fashion, insurance companies would be regulated a bit better to ensure you're easily able to select an appropriate ownership type without having to define a PCP as a lease etc.

 

[kinger8938]

You'd think that given roughly 90% of new car purchases are supposedly financed in some fashion, insurance companies would be regulated a bit better to ensure you're easily able to select an appropriate ownership type without having to define a PCP as a lease etc.

Yep! I bet it's probably a non issue? If you make a claim surely they would just sort it at the time but I guess not declaring it's owner by a 3rd party gives insurance companies potential ammo to not pay out of claim it's void

 

[layte]

Admiral only want to know who the registered keeper is.

 

[kinger8938]

Admiral only want to know who the registered keeper is.

Yeah I think providers themselves vary on what they need to know and assumptions they make. Tbh if a car is financed, they will know about it and it the case of a claim pay the provider of the finance rather that yourself I guess

 

[ZG002]

The only thing I'd say with the free insurance is keep your insurance document handy for the first day.

I used it to pick up a Swift Sport years ago and got pulled about 5 minutes later via traffic police with Anpr.

Probs won't happen but it's easier if you have the document with you if it does.

 

[kinger8938]

Good point.

Tbh I'm going to sort my insurance tonight now. Set current one to cancel in a week's time in case we need bit more time selling it.

Will set new policy to start tomorrow.

I did sign up for the free cover but I'm sure I can just ask them to cancel it

Aviva came up cheapish, so will go with them. I selected private leased on Confused.com but when I go through to Aviva there's no mention of ownership anywhere. Asked via twitter and get the feeling it's just how they work. They just need to know the named drivers