A Question

[Rob S]

Perhaps some of the insurance industry members who frequent this section of the forum might be able to answer this one.

Where a car is jointly owned by, for example, a husband and wife, only one of them will be put down as the registered keeper as DVLA won't accept 2 persons as being the registered keeper. When it comes to insuring the car, although both are the owner of the car, why is it that many companies won't offer cover if the spouse who is not the registered keeper tries to take out a policy, even though they are the legal owner of the vehicle?

[cazzaswfc]

In honesty, no idea, It was my understanding most do, Norwich Union ( the one I work for ) do allow spouses to insure the car when they are not the registered owner/keeper.

My guess would be that some co have slightly harsher criteria? for example NUD - won't insure somebody who wants to insure some one elses car ( spouse exc) so say your son is the registered owner but Dad wants to insure it, we wouldn't cover that as policyholder has no insurable interest ( fronting is a complete seperate issue- don't get me started on this!) obviously for partners etc you do as you share financial responsibility etc, I'm guessing that some other companys may well have one rule and don't budge from it?

[Rob S]

It seems a lot are like that Cazza. I was just playing around with some online comparison quotes and when I entered myself as the registered keeper and my wife as the policyholder it was surprising the number of companies that would not quote. I don't know how they would be if you phoned them up for a quote and whether they would offer cover.

[cazzaswfc]

Possibly, it's surprising how many things refer you to the call centre if you try and do a "quick" quote online, to be fair it sounds like if this is what you have come across, is the companys want you "on tape" that way the advisors would question you (like I stated in my post before a lot will decline when you have no insurable interest) as to who exactly is the owner and keeper etc, then in claim situations you would be covered etc, no investigations etc.

Stupid as it sounds some people will lie, get insurance etc ( believing that any insurance is better than no insurance) then wonder why a company will throw a claim out due to non disclosure!!

When dealing with insurance companys, tell the truth! why would you not?
take not disclosing motor convictions for example, is it really worth not declaring one to save X amount? try then making a claim with smaller companys and see what happens!

yet on a daily basic I see non disclosure from anything from fronting to lying about ncd, and people COMPLAIN about it! surely it's bad service from the insurer and NOT the policyholders fault??

anyway gone a bit off track!!! back to the original point

I don't think many co will say no to sposes etc - just do it over the phone!

[Darkangelsdelite]

Its called the Principle Of Financial Interest.
Basically you can only insure something you have a financial interest in.
So in the example of a car, only the owner can insure it as he is the one that stands to lose out if the car is damaged/written off etc.
Most insurers will look at spouses as "joint interest" in that they also stand to lose out financially if the car is damaged as legally anything thats owned by him, is owned by her too.
Some will also agree cover if its owned by partners (referred to as "common law" i.e living together but not married) and also in civil partnerships as well.
Most if not all of the RBS brands will accept Either husband or wife as the ph regardless of which one owns the car. Not 100% sure about the partner stance, i dont deal with new business really so i'd have to look into it.
Anywho, hope thats answered the question.

Cheers


DA

[Rob S]

DA and Cazza,

Thanks for your prompt answers. What my wife and I are trying to do is to preserve our own individual (and hard earned ) no claims bonus by insuring the car with me as the policyholder one year and her the following year, and so on. We both use the car about 50/50 so neither is the dominant user of the car, so it shouldn't cause problems with regards to one of us being the policyholder one year but not being the main driver.

[Darkangelsdelite]

No Probs.
A lot of people do the same thing mate, its getting quite common nowadays.
Its crazy, because the NCD is only valid for 2 years, potentially someone with 50 years NCD could sell the car, go on their husbands/wife's policy as a named driver for 3 years then be in a whole world of trouble when they try to re-insure in their name. I know they have to have a limit somewhere but you'd have thought there'd be a little more common sense?!
As long as you can keep track of the policies you have taken out each year and you stay on top of the paper work etc then i'd carry on with what you're doing as theres no reason why you cant change every year, just keep a note of the insurers that will accept a policy on a car owned by a spouse and you're well away.

hope it all works out


DA