Motor Isurance Question- Car not in my name

[edwardm]

Hi all.

My sister has just arranged car loan for me & we have bought a car.

I'm having trouble insuring it as its registered to Her, and all the insurance co's want the proposer (me) to be the registered owner.

I've been told by some of the insurance co's to go on cover with her as the policy holder, & me as a named driver, which is starting to return some crazy quotes as she'll have zero no claims bonus {she's using her bonus on her policy}.

And then i was told by another insurance company that this is illegal as she'll just be "fronting" the policy, and that in the event of a claim & it was looked into, the insurance co might not have to pay out.

Is there anyone with insurance industry experience on here that might know what the story is with this.

{i cant have the car transferred to me for numerous reasons}

 

[mathepac]

All of the information you and your sister have been given appears to me to be accurate.

 

[briancbyrne]

yes you need to have what is called an "insurable intrerest" in the car....i.e. you must stand to lose if something were to happen to the car.... legally the car is still hers and as such you dont have this "insurable interest". The car needs to be registered in your name in order for you to insure it.
The only way around this is to have it registered in your husbands/wifes name (if you're married), and then you may insure it in your name.