# company car - can you insure privately?



## reb30 (15 Dec 2007)

My boss has a company car, well his wife uses it, not used for business but bought as a company asset, tax thing, question is can they insure it privately or dose it have to be a company policy. renewal came through for 1300 but if they were to insure privately would only be 400?


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## GA001 (15 Dec 2007)

reb30 said:


> My boss has a company car, well his wife uses it, not used for business but bought as a company asset, tax thing, question is can they insure it privately or dose it have to be a company policy. renewal came through for 1300 but if they were to insure privately would only be 400?


 
Well, no, there are a number of issues here:

- As it is for business usage, then it *could* be insured privately, but would have to be loaded as appropriate (ie. business usage loading, so you would not get away with it being cheaper than private usage)
- Are the 'Boss' and his wife the sole director(s) of the company ? If so then it maybe 'ok' to insure it, (provided there are no other users of the vehicle) BUT.. you cannot insured something you do not own, so if there was multiple directors of the company, then it could not be insured privately, the VLC would state that it is registered in the companies name
- Another issue would be the No Claims Bonus, not every company would allow you to transfer the NCB into the private name, if they did, it would not be transferable back into the company name.. it depends on the stance taken by each insurer..

Just a few things to consider - it could be done, but you would not be disclosing full details and your policy could be voided by the insurer.


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## RainyDay (16 Dec 2007)

Are the insurance company aware that the wife is the main driver of the car? Does the wife have a BIK liability? Does she get any income from the company.


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## FrCrilly (28 Dec 2007)

The official owner of a vehicle is the one who has to insure it. If it's the company, it has to be a company policy, if it's a person it has to be that person's private policy. 

In short, if you want to insure it privately, you'll have to change ownership.


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