# Insuring a friends car



## dr-x (Jul 31, 2010)

Evening all

I paid my policy in full in July and have just sold my car, My new car will not here until Early November, In the interim a friend has offered the use of his car (Car is a much lower group than my insured car), What do I need to do to get this legal, Can I leave the policy run on my old car ( So I can drive my friends car, Third Party on my current policy)


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## CraigQQ (Jan 20, 2011)

phone your insurance company, and transfer the policy to his car if your going to be the sole driver.. you might even get a refund if its cheaper.

if your not going to be the main driver, then cancel your insurance and have him add you as a named driver to his.

as far as I remember, it's illegal to keep your policy running on a car you don't own.


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## rizo (Jul 14, 2012)

CraigQQ said:


> phone your insurance company, and transfer the policy to his car if your going to be the sole driver.. you might even get a refund if its cheaper.
> 
> if your not going to be the main driver, then cancel your insurance and have him add you as a named driver to his.
> 
> as far as I remember, it's illegal to keep your policy running on a car you don't own.


incorrect, you cannot insure something you do not own, one of the main principles of insurance is insurable interest. you need to cancel you policy and get yourself added to his policy.


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## dr-x (Jul 31, 2010)

Thanks Guys:thumb:

Nothing is ever easy eh....
Cant add his policy as it's not currently insured ( it was bought for their son who is still learning). Think I'll have to inform my insurance though...


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## rizo (Jul 14, 2012)

i'm guessing the car is low value?

can you not purchase the car then sell it back once your done?


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## dr-x (Jul 31, 2010)

Think I'll have to m8:wall:


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## macca666 (Mar 30, 2010)

rizo said:


> incorrect, you cannot insure something you do not own, one of the main principles of insurance is insurable interest. you need to cancel you policy and get yourself added to his policy.


Are you sure about this? I used to insure my partner's car with me as main driver and her as second driver. Car was registered to her so car wasn't owned by me. Reckon this was about 5 year ago mind so things may have changed.


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## Natalie (Jan 19, 2011)

I didn't think the registered keeper of the car was the same as the legal owner? So could you not get round it that way?


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## Kerr (Mar 27, 2012)

dr-x said:


> Evening all
> 
> I paid my policy in full in July and have just sold my car, My new car will not here until Early November, In the interim a friend has offered the use of his car (Car is a much lower group than my insured car), What do I need to do to get this legal, Can I leave the policy run on my old car ( So I can drive my friends car, Third Party on my current policy)


It is illegal to have two insurance policies on the same car.

You need to end the policy on your old car for one.

As for the friend's car, if your mate in insured on the car he could add you as a named driver.


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## rizo (Jul 14, 2012)

macca666 said:


> Are you sure about this? I used to insure my partner's car with me as main driver and her as second driver. Car was registered to her so car wasn't owned by me. Reckon this was about 5 year ago mind so things may have changed.


absolutely positive mate.


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## macca666 (Mar 30, 2010)

rizo said:


> absolutely positive mate.


Some companies will offer exceptions i.e. spouse/partner, long term lease car, company car so this must have been how I managed it. Agree in general terms though it won't be allowed and policyholder must be owner. :thumb:


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## rizo (Jul 14, 2012)

macca666 said:


> Some companies will offer exceptions i.e. spouse/partner, long term lease car, company car so this must have been how I managed it. Agree in general terms though it won't be allowed and policyholder must be owner. :thumb:


spouse/partner you kind of share your finances for you both have an insurable interest in this.

lease company would make you responsible to insure it which makes the insurable interest.

a company car could work similar to a lease.

alot of companies now have the question who is the register owner/keeper and i am pretty sure "my mate" won't be on that list. :lol:


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## Shiny (Apr 23, 2007)

Pretty much as Rizo says, although arguably there is insurable interest as far as Third Party Risks are concerned. But either way, it is unlikely that an insurer will provide cover for a vehicle that belongs to a mate, not even for TPO cover.

Firstly, you can not drive on your "Driving Other Cars Extension" as the certificate you have is now invalid as it relates to a car you have now sold. As it stands, you do not currently have any cover to drive other cars.

There are two (possibly three) solutions to this -

1) You buy the car off your mate, transfer the reg docs into your name and then do change of vehicle under your current policy. You can then of course sell it back to him when your new car arrives.

2) You cancel your own insurance and your mate takes out a new policy in his name insures the car with you noted as an additional driver and the main user. Then you take up a new annual policy when your new car arrives.

3) Temporary (short term) insurance. You cancel your own policy and then arrange temporary insurance for your mates car. For some bizarre reason they are OK with insuring cars that don't belong to the policyholder. This can be costly though and will have to be in chunks of 28 days, for example http://www.dayinsure.com/temporary-car-insurance/monthly-car-insurance.aspx (no affiliation and by no means recommended by me, just an example of what is available). Then take up a new annual policy when your new car arrives.

Finally, i've mentioned this before, but it is not "illegal" to have more than one policy on a car. Stupid maybe, as you are paying more than once. Insurers contain a "contribution" clause in their policies whereby if dual insurance exists, one Insurer asks the other/s for a contribution to the cost of the claim based on their proportion of the risk being covered.

What is illegal is trying to claim the full amount of the claim from both Insurers, as this is a fraudulent activity.


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## rizo (Jul 14, 2012)

Shiny said:


> Pretty much as Rizo says, although arguably there is insurable interest as far as Third Party Risks are concerned. But either way, it is unlikely that an insurer will provide cover for a vehicle that belongs to a mate, not even for TPO cover.
> 
> Firstly, you can not drive on your "Driving Other Cars Extension" as the certificate you have is now invalid as it relates to a car you have now sold. As it stands, you do not currently have any cover to drive other cars.
> 
> ...


nicely put :thumb:

i haven't been able to figure out how they get around ownership on temporary covers


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## dr-x (Jul 31, 2010)

Cheers Guys :thumb:

I have suspended my policy, and will be doing one of two things tomorrow

1)Transfering OwnerShip of friends car (V5)
2) Pay for friends insurance and add myself as a named driver


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## Shiny (Apr 23, 2007)

Nice one. In all fairness you have been very lucky to be able to suspend your policy!

It used to be available on pretty much all motor policies and you would get a credit (a % of the unused period) against your next year's renewal provided you renewed with the same Insurer.

This pretty much got phased out and i've not known an insurer that will allow the suspension of a policy for a good 5 or more years, so that is a bit of a result for you.


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## Jordan (Dec 22, 2008)

Lloyd,

quick Q, and similar situation.

By the looks of things, i wont have a license for much longer. however, i still will have ownership of a car. it wont be used often, but when it will be it will be a friends driving it. whats my best route to take for insuring it? as i know i cant because one of the conditions is that you need to have a license if i remember correctly?

Cheers bud


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## Shiny (Apr 23, 2007)

Sorry i haven't replied earlier Jordan, i didn't see the post until now! lol!

Anyway, under "Continuous Insurance Enforcement", if you have a car that is taxed, it must be insured. 

So you can't have it taxed without insurance and let your mate drive round on his "driving other cars" extension.

As mentioned earlier in this thread, your mate can't insure it either as he isn't the owner etc.

All is not lost though. You can still arrange a policy in your name but "excluding driving by the policyholder". You will then need to include your mate as an additional driver, noting him as the main user (which he will be due to you not driving). You also still get to use your NCB so the premium benefits from the discount you have earned.

There is a limited market for this though. Most online computer quote engines want simple straight forward stuff, so they don't have the option "exclude policyholder" in the drop down box choice. So you will have to find an Insurer that has this option available, which may involve some lengthy telephone calls.

You will also need to explain why you don't have a licence and this may also have a bearing on whether the Insurers will take you on. If it is a temporary ban (ie 1 year or so due to Drink Drive etc), the Insurers are less favourable as they kind of have an obligation to insure you when you get you licence back, and they may not be in the market for that kind of risk. If it is for health reasons, then the insurers tend to be more sympathetic to the situation.

The first port of call would be your current Insurers as they already have you as a customer and may be more prepared to sort out what you need.

Hope this helps.


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