PCP Insurance

grogi

Here comes the combo questions

There are numerous threads about insuring a vehicle one is not owner of and why such insurance is not valid.

What about PCP? The car is not owned by the driver until the GMFV is paid - so how this is possible?

Del2005

grogi wrote: »

Here comes the combo questions

There are numerous threads about insuring a vehicle one is not owner of and why such insurance is not valid.

What about PCP? The car is not owned by the driver until the GMFV is paid - so how this is possible?

You have an insurable interest in it, same way as people have been insuring cars on HP or lease for years.

grogi

Del2005 wrote: »

You have an insurable interest in it, same way as people have been insuring cars on HP or lease for years.

How well defined is it? What I mean is: is the term defined in common law, is it part of the policy or is it just common sense?

And another observations - as majority of the online quotes are available only to the registered owners, does it mean that those policies on PCP cars can be considered voided?

Drummerboy08

You are the registered owner with PCP.

Rusky rusky

grogi wrote: »

Here comes the combo questions

There are numerous threads about insuring a vehicle one is not owner of and why such insurance is not valid.

What about PCP? The car is not owned by the driver until the GMFV is paid - so how this is possible?

In T&C it's written that in the case of a total loss insurance will pay out to the finance company.

To Elland Back

You are committed financially to repaying a loan on the car, so you have an interest. You would suffer financially by it's loss and that creates your interest

sunnysoutheast

From memory there is a stipulation in my finance agreement that the vehicle is comprehensively insured for market value.

Of course if the payout is less than the outstanding finance they will chase me for the difference, which is where gap insurance comes in handy.

ironclaw

Drummerboy08 wrote: »

You are the registered owner with PCP.

You could be the registered owner of something but not have an insurable interest on it i.e. You must be able to prove you would suffer a loss, fiscal or otherwise, if the asset was lost or damaged.

Drummerboy08

ironclaw wrote: »

You could be the registered owner of something but not have an insurable interest on it i.e. You must be able to prove you would suffer a loss, fiscal or otherwise, if the asset was lost or damaged.

Yes but this is no different to Hire Purchase. You still don't own the car on either set up until you make the last payment, once the car is registered in your name it's usually all your insurance company are ever worried about.