How do I insure a car purchased on a PCP?
I am about to buy a car on PCP in order to take advantage of Volkswagen's generous deposit contribution. The vehicle will be registered new in my name and I will be the keeper. But what do I need to tell my insurance company? Should I say I own the vehicle? Or do I need to tell them that Volkswagen Finance 'owns' the vehicle until the PCP is settled?
Asked on 10 July 2018 by Mike Beaumont
Answered by
Tim Kelly
Yes, you are the registered keeper and own the vehicle, it should not change anything until you have a claim and the vehicle is a total loss. The only effect it has is on the determination of what settlement is provided and the amount the insurer will try to wangle out of paying. If you have the right to purchase the vehicle, make sure you highlight it in your own documents so it is easy to find. The insurer in this situation can/will try to argue the vehicle is not yours and they will only pay what the car owes the leasing company. If you have the right to buy at the end of the plan, the insurer has to pay the full retail market value.
Tags:
pcp
insuring a car
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