Car insurance question - what's the best way to do this?

The Big Red Button

I have a '98 1.3L Colt which I bought three years ago and have been the only person insured on it since then. No claims history etc, and I have my full licence for around five years or so. I've only ever gotten TPFT insurance.

I renewed my insurance for the year just a couple of weeks ago (cost for the year is around €400 I think, can't remember exactly.) It's with 123.ie.

However my sister has suggested that she might be interested in buying my car in a couple of months. I'd be open to this, as I very rarely use the car, and had been considering selling it anyways.

My sister is in her late twenties, and only has a provisional licence (or whatever the new name is) and no driving experience. She's planning on getting several lessons over the summer, and then would perhaps buy the car if the lessons are going well.

So, if we go through with this and I sell the car to her, I'd still hope to be able to drive it very occasionally (we live close to each other, and I doubt she'd be using it all that much, so I'm hoping she'd be agreeable to this.)

As far as I can see, the options are:

• I keep my insurance with 123.ie, and put her on it as a named driver. However I'm not sure if this is legal - do you have to be the legal owner of the car to get insured on it? If so, would it make sense to postpone the sale at least until this years policy expires, but in the meantime we could both drive the car, with her as a named driver on my insurance, but the car would still be in my name for the year? (I'm not trying to get around any laws here - if we do it this way, the car would still be fully legally mine, I'd keep it at my place, but let her drive it when she wanted. Then would perhaps sell it to her this time next year, when my insurance is up for renewal.)

• Sell the car to her. Cancel my policy with 123.ie (I assume I'd lose most/all of the premium for the year?) Then, she'd get a new policy in her own name, with me as named driver. I'd pay the increase relating to having me as named driver (can't imagine it'd cost much extra.)

However, with the second option, she could end up paying a very high premium as she has no driving experience? So would it be better for us to go with the first option, to let her build up some experience first, before selling the car to her?


Or is there a way that I could sell the car to her, leave her to sort out her own insurance, and arrange in advance to get insured on it for just a day or two at a time, every couple of months, the odd time I'd need to use it? I'm guessing not! But I really know very little about insurance.


Also - if I sell the car to her, I wouldn't plan on buying another car myself for another couple of years. However I would continue to be a named driver on my dad's car. I understand that NCB history is valid for two years, so as long as I got another car within two years, I'd keep the three years I have built up. If it end up being longer than two years, though, would the fact that I was named driver on my dad's insurance for those two years mean that I'd keep my NCB? And, if not, would it really make that much difference to the premium for a female in late 20s with full licence?


Thanks for any advice, and sorry if the above is a bit messy!

Drummerboy08

If you sell the car to your sister, you'll legally have to have the car in her name.

AFAIK, for someone to have an insurance policy on a car, it needs to be in that persons name. So, for your sister to have her own policy on the car, the car would need to be in your sister's name.

I think it would make more sense for your sister to get the policy in her name and you as a named driver. As she would be the main driver of the vehicle, this is the correct way of going about things.

I'd also imagine that having you on her policy won't cost a whole lot extra.

Doing it this way means that everything is above board (Assuming your sister will be driving with a full licence holder).

Anan1

Second option all the way. Firstly, if you insure the car and she has an at-fault accident then your NCB will be gone. Secondly, it's in your sisters interest to start building up her own NCB, and a '98 Colt 1.3 is a good place to do that.

The Big Red Button

Anan1 wrote: »

Second option all the way. Firstly, if you insure the car and she has an at-fault accident then your NCB will be gone. Secondly, it's in your sisters interest to start building up her own NCB, and a '98 Colt 1.3 is a good place to do that.

See, the other problem is, that my parents were horrified at the idea of her buying my car, when I mentioned it to them. :rolleyes:

They were horrified, too, when I bought it in the first place. But sure it's cost me feck all in maintenance, and it was an absolutely ideal first car! I have zero regrets about buying it - I needed it for those few years, but I just don't really need a car these days. But it's an ideal first car, it's running perfectly, and I really think it would suit her.

But their thinking is that, since she could afford to buy a new car without a loan, why on earth would she even consider a second-hand one, especially one as old as mine (although mine is running absolutely fine, and I've always kept it serviced well etc.)

They're not well off, but they've almost always bought brand new cars. And, unfortunately, the two times they've bought second-hand cars have ended up badly. So they are dead against her buying the car off me!

My thinking is, WHY would a brand new inexperienced driver even consider buying a new car? :eek: I'm hoping my sister sees sense and doesn't listen to my parents! Not that I'm set on her buying my car - I haven't even decided on whether or not I want to sell it - but she sure as hell should NOT buy a new car! But my parents can't see that at all!

Drummerboy08

Chances are whatever she buys will end up with more hits than the Beatles, so it would be madness to buy a brand new car for a new starter!