Insurance Question

[Ben_99c]

Stupid question, I know, but I've never purchased a car on finance before!

When doing the insurance quote, on the "Who owns the car?" question, what option do I pick?

Private Leased? Company? Company (Leased)? Or is it just me?

TIA

 

[chopper602]

You do - you'll receive the V5 with your details on

 

[Spirited]

Stupid question, I know, but I've never purchased a car on finance before!

When doing the insurance quote, on the "Who owns the car?" question, what option do I pick?

Private Leased? Company? Company (Leased)? Or is it just me?

TIA

Not a stupid question at all this one.

The answer is, I think, a combination of:

• reading your finance doc,
• asking your insurer and
• using good judgement.

Your finance doc is likely to include a clause requiring you to tell the insurer that the car belongs to the finance company.

When I asked my insurer, I explained about the finance deal I had (the standard finance product offered by Toyota in the UK) and they said that I should select Lease Company. It makes sense to me because... indeed it's the finance company that owns the car; I just hire it from them. There is likely to also be a separate field in your insurance quote & policy doc as to who is the registered keeper.

The V5C mentions my details as the registered keeper and also that it is not proof of ownership.

My (large) Toyota dealer, including the top dog there, insisted that I should tell the insurer that the car is mine. I'm confident that this is nonsense, because... well, the car isn't mine; it belongs to the finance company and once the deal is over I should return it to them, unless I choose to effectively buy it from them (by paying the "balloon").

Finally, different rules apply to different finance products.