Careful Registered Keeper but not Legal Owner

[Swislon]

I haven’t finance a car for years but taking advantage of the zero interest HP deal on new Ocean picking up tomorrow. Reading the small print I don’t legally own the vehicular until paid off the finance. Therefore Registered keeper but not legal owner.
Tell insurance company about the situation (NFU) and my premium increases by £47!
Still an Ok deal but came as a surprise. I hadn’t registered in my mind that it would matter but I could have found out the hard way if I hadn’t informed them. At no stage had any insurance company asked me if I was financing the vehicle when I was looking at quotes. That would have highlighted the issue straight away.
I should have picked up myself as usually very careful around insurance but I didn’t.

 

[Ch1pbutty]

I haven’t finance a car for years but taking advantage of the zero interest HP deal on new Ocean picking up tomorrow. Reading the small print I don’t legally own the vehicular until paid off the finance. Therefore Registered keeper but not legal owner.
Tell insurance company about the situation (NFU) and my premium increases by £47!
Still an Ok deal but came as a surprise. I hadn’t registered in my mind that it would matter but I could have found out the hard way if I hadn’t informed them. At no stage had any insurance company asked me if I was financing the vehicle when I was looking at quotes. That would have highlighted the issue straight away.
I should have picked up myself as usually very careful around insurance but I didn’t.

Similar situation with a leased vehicle; Although premium was unchanged on our 2nd car, when the box was ticked.

 

[Hawthorn37]

I haven’t finance a car for years but taking advantage of the zero interest HP deal on new Ocean picking up tomorrow. Reading the small print I don’t legally own the vehicular until paid off the finance. Therefore Registered keeper but not legal owner.
Tell insurance company about the situation (NFU) and my premium increases by £47!
Still an Ok deal but came as a surprise. I hadn’t registered in my mind that it would matter but I could have found out the hard way if I hadn’t informed them. At no stage had any insurance company asked me if I was financing the vehicle when I was looking at quotes. That would have highlighted the issue straight away.
I should have picked up myself as usually very careful around insurance but I didn’t.

I’m very surprised there was a premium penalty. We‘ve financed quite a few cars and it’s not come up as an issue. However, I’ve always been open with insurers, so maybe I paid extra without realising?!

 

[Mansfieldman750]

I’m surprised by that as well. Make a point of letting them know when you make the final payment and get that £47 back.

 

[RockinNRollin]

I suspect it’s because if you were the legal owner you’re probably (on average) likely to be slightly more careful than a leaser who intends to throw it back to the lease company at the end of the term? It is still irritating though.

 

[Swislon]

It’s a 5 year Hire Purchase at zero interest which is quite different to a lease. It seemed like a no brainer but I hadn’t considered the insurance.
It’s a funny world insurance.
Two insurers didn’t need a tracker. Several insisted on one. Two wouldn’t even quote because of where we park (residents courtyard outside our double garage!) and several were so expensive that I burst out laughing. Best two for us was NFU and Safeguard. We went with NFU as it was £100 cheaper . Safeguard bundle in breakdown cover which we didn’t need but wouldn’t unbundle.

 

[Ch1pbutty]

I suspect it’s because if you were the legal owner you’re probably (on average) likely to be slightly more careful than a leaser who intends to throw it back to the lease company at the end of the term? It is still irritating though.

You still need to hand a lease car back in good condition. They get inspected upon redelivery, followed by a bill for any damage/repair that is not considered as usual wear and tear.

Also get the option to buy the car at the end of the lease before it goes to auction, so pays to keep in good condition.

 

[RockinNRollin]

You still need to hand a lease car back in good condition. They get inspected upon redelivery, followed by a bill for any damage/repair that is not considered as usual wear and tear.

Also get the option to buy the car at the end of the lease before it goes to auction, so pays to keep in good condition.

I don't disagree, but I would still say those who have invested their own hard earned in a purchase knowing it's going to be a long term possession are probably going to be instinctively a bit more careful, e.g. maybe thinking twice about where it gets left, taking it out in marginal driving conditions (snow etc..).