Insuring car not in our ownership

S

Slim

Registered User
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Currently, we are registered on VRCs of two cars, one is registered in my name but insured in my wife's name and the other vice versa(this due to an historic goof by a dealer but not an issue for insurers).

We intend to trade in one car but put new car in son's name. He is named as a driver on the current policy but will seek his own insurance on renewal of the policy next year. In the meantime, if I transfer the policy to the new car, might the insurer renege on the comprehensive element if anything happened and they see it is no longer registered in either of our names?
 
yes. The basis of the contract has materially changed. Husband / wife and ownership and policy is interchangable. Policy in your name, car registered in the sons name bangs of fronting.
 
Slim said:
if I transfer the policy to the new car, might the insurer renege on the comprehensive element if anything happened and they see it is no longer registered in either of our names?
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Yes, look at the small print. Most insurers will have a stipulation that the car must be owned by you or your partner.

Insuring a car owned by someone else, particularly a young driver could be seen as fronting and result in your insurance being cancelled, an offence that could impact all your ability to obtain insurance in future.
 
Leo said:
Yes, look at the small print. Most insurers will have a stipulation that the car must be owned by you or your partner.
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I can't see anything to that effect in my AIG documentation (application form, schedule, policy booklet etc.). The schedule does have a field "Registered owner?" which has "yes" entered but that suggests that it could be "no" and nowhere can I find anything else specific about ownership.
 
faketales said:
Surly the entire basis of insurance is based on the person who owns the asset insuring it as it I their loss?
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A large majority of the cost of insurance relates to the potential claim from third parties. That risk relates almost entirely to driver behaviour and characteristics.

Potential claims from you damaging your own car are quite a small share of the cost of a premium.
 

Yes but surly all claims include some element of cover for your own car via “fire and theft? Or if hit my a hit and run you can claim against your own insurance.
 
The issue is who the main driver of the car is. The insurance premium was based on the OP being the main driver of the car. If the OP transfers ownership to his son, the insurance company may form the impression that the son is now the main driver of the car and the insurance policy is now based on incorrect information . Worst case, they could claim the policy is null and void.
 
faketales said:
Yes but surly all claims include some element of cover for your own car via “fire and theft? Or if hit my a hit and run you can claim against your own insurance.
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Yes, but a small element so irelevant in this context
Insurance to cover the replacement of a 30K car is cheap. Insurance to cover a 1M claim if you put someone in a wheelchair for life is a lot more expensive
 
Yes - I agree about that and the dangers of "fronting" but my point was that there doesn't seem to be any obvious constraint on ownership of the vehicle - at least not that I can see in my AIG policy documentation. Of course, maybe if I had declared that I did not own my vehicle then there would have been a loading or refusal? (I also can't see anything in my documenation about ownership when it comes to spouses).
 
ClubMan said:
The schedule does have a field "Registered owner?" which has "yes" entered but that suggests that it could be "no" and nowhere can I find anything else specific about ownership.
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AIG request confirmation of the registered owner and main driver in the proposal forms, if you state you won't be the main driver or the owner they will refuse to quote.
 
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