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I pick up my new Polo next Monday and I was looking at insurance on it.

As this is my first PCP finance car and the legal Owner is the PCP finance company do you tell your insurance company that it is “Privately leased” as that was one of the options in the drop down box on the insurance website.

Steve_2019 wrote: ↑Tue Oct 22, 2019 4:05 am I pick up my new Polo next Monday and I was looking at insurance on it.

As this is my first PCP finance car and the legal Owner is the PCP finance company do you tell your insurance company that it is “Privately leased” as that was one of the options in the drop down box on the insurance website.

No the car is yours. Personal Contract Purchase has the V5 registered in your name and the car is yours but the finance on the car is secured on it so if you stop paying or crash it and its written off you will still owe them the finance amount. This can be tricky especially if you crash it and owe more than the insurance company value it as you will still owe them the outstanding balance which is where GAP insurance comes in but thats for you to decide if you want that or not.

If you do decide to get GAP insurance, I’d recommend you don’t buy the VW product as it’s horrendously expensive compared to what you’d pay elsewhere with the likes of ALA, Direct GAP, GAP insurance 123 etc.

Shop around and save yourself some money.

Hi,

As john896 says, the cars is yours as you are the registered owner. On Gap please check out other providers such as ala.co.uk and totalloosgap.co.uk as they provide the same, if not better cover that the dealer will offer - they will tell you scare stories about other providers to put you off these. And these are a fraction of the dealer price who can charge anything from £339 upwards! Ala and total loss are circa. £100. And also avoid add ons such as paint protection, smart repairs, wheel and tyre insurance until you check out prices from elsewhere.

Enjoy the car.

Just to be clear i am not suggesting you do or don't get GAP insurance i was just pointing out what can happen in the event the car is written off while on PCP. Suppose its a personal preference thing and as stated look around for other providers as VW will just try and sell you anything they can.

I thought on PCP you don’t become the legal owner into you payed the ballon payment at the end of the finance contract.

Hi,

You are correct that with PCP you aren’t the legal owner until the final payment has been made, but over the years most insurance companies understand PCP and offer sensible prices. It your existing insurance company doesn’t offer a sensible deal then go elsewhere, and definitely use a comparison site.

I’ve been with Direct Line, Morethan and Churchill without any issues with the car being on a PCP.

Aube wrote: ↑Tue Oct 22, 2019 12:49 pm Hi,

You are correct that with PCP you aren’t the legal owner until the final payment has been made, but over the years most insurance companies understand PCP and offer sensible prices. It your existing insurance company doesn’t offer a sensible deal then go elsewhere, and definitely use a comparison site.

I’ve been with Direct Line, Morethan and Churchill without any issues with the car being on a PCP.

Aube what do you put down as the legal Owner of the car.

On my car insurance you got few options

1. Company lease
2. Private lease
3. Company
4. Other

I would thought it be private lease.

I’m with Direct Line so checked the assumptions on the quote form so having the car on a PCP isn’t an issue. Also certain this was similar on other policies I’ve had over the years.

A call maybe the best way rather than run any risk having the wrong cover.

The owner of the car is the one who has their name on the legal document which is the V5. A lease vehicle is very much different as you don't own or even have the V5 in your name on most if not all as you are effectively renting the car and the deposit paid on those deals is not put towards the value of the car for purchase a bit like a security deposit. Car finance is just a loan secured on the car in the even you fail to make payments as opposed to an unsecured loan from a bank which you could by a car with and if payments were missed they would have a harder time getting the money back.

PCP - you are buying and hence the car would be yours and so people will generally treat it better and look after it.
Lease (Private/Business) - you are renting a car, have no money tied up in it that you can get back and generally people treat them like a hire car and don't look after them as much.

I have been in the unfortunate position in my youthful days of writing a car off on finance being insured with directline and no questions asked about it they just pay the car finance off and you get what's left over if there is any value left in it over and above the remaining finance value.

I have just purchased a new Polo GTI and within T&C's of the finance document I signed, it states I am not the legal owner and that I should declare the finance company as owners

I selected private lease when changing over my car insurance

It is confusing though and it's more annoying that the insurance company I dealt with didn't know the correct legal owner option

I didn't go with GAP from the dealer and I am looking online. Another area of confusion is my car insurance states replacement new car within 12 months if more than 60% of value written off

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On my previous VW car I was actually insured with VW Insurance (for free) and I originally selected ‘finance company’ as the legal owner because the T&C of the PCP said to. The application got referred and I had to call VW Insurance. They said they don’t insure cars where the policy holder isn’t the legal owner.

I explained to the lady at VW that their own PCP t&c’s say I’m not the legal owner, and to tell the finance company. VW Insurance said it was their view that the legal owner of a PCP car is the person on the V5. So I guess when they ask for the legal owner, what they really mean is the registered keeper - which in the case of PCP will always be the same person as named on the PCP agreement.


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