The Student Room Group

Legal Owner/Registered Keeper

Right I'm confused slightly (doesn't take a lot I know).
I've just been and brought my first car, well I say bought it, I'm paying for it through the hire purchase scheme thing. Question is when it comes to insurance am I the legal owner and registered keeper or am I just the registered keeper until my final payment is made in three years time?
Any info will help. Thanks
(edited 9 years ago)
Bought*

Well what does the DVLA ownership state?
Reply 2
Original post by jackhaugh
Bought*

Well what does the DVLA ownership state?

Sorry :s-smilie:
And I don't know. If I could find that info I wouldn't be asking the question.
Reply 3
If the log book is in your name you are the registered keeper. The car becomes yours under the scheme only when the conditions of the agreement are fulfilled (i.e. all payments are made) - so you are not the legal owner. Most insurers will take little to no notice of the legal owner clause in this situation, though, so when getting a quote online put down that you *are* the legal owner and then explain after when calling them to accept the quote that it is a hire purchase. They might negotiate a different premium based on the new info but most likely will not.

~Matt
Reply 4
Original post by danty
If the log book is in your name you are the registered keeper. The car becomes yours under the scheme only when the conditions of the agreement are fulfilled (i.e. all payments are made) - so you are not the legal owner. Most insurers will take little to no notice of the legal owner clause in this situation, though, so when getting a quote online put down that you *are* the legal owner and then explain after when calling them to accept the quote that it is a hire purchase. They might negotiate a different premium based on the new info but most likely will not.

~Matt


Thankyou.
I bought it from a main dealership, so would the legal owner come under 'Leased Company' and then the dealership name would be the company yeah? Just need to try and work out quotes before sitting and phoning endless insurance companies.
Reply 5
The hire purchase scheme operator would be the legal owner, which might be the dealership: call them and ask. But yes, leased company would be the legal owner.
Reply 6
Original post by danty
The hire purchase scheme operator would be the legal owner, which might be the dealership: call them and ask. But yes, leased company would be the legal owner.


Thanks.
Looking at the paperwork they wrote my quote on it says: Banque PSA Finance trading as Peugeot Financial Services. So am I right in presuming the legal owner is Peugeot Financial Services?

Posted from TSR Mobile
Reply 7
Either works. "Banque PSA Finance" are, but "Peugeot Financial Services" is their trading name for the agreement. Neither would be wrong.
Reply 8
Have you got the v5 logbook in your name or did you fill in the new keepers suplement in your name?
If you did then your the registered keeper blah blah.
But you dont own the car until you pay all payments, basically you cant sell it.
The legal owner is the person lending you the money to secure the car. In your case it's the finance company. Someone above said that insurance companies pay little to no attention of the legal owner status, this is wrong! They wouldn't ask if they didn't want to know who the legal owner is. If you lie on your insurance you may invalidate it and they reserve the right to cancel the policy or refuse to payout in the event of a claim. Also, if you check your finance contract you will probably find a clause in it that states you MUST tell the insurance company that they are the legal owner. So not only do you run the risk of invalidating your insurance, you are also in breach of contract with the finance company, who may demand its immediate return under repossession AND demand that you pay the outstanding amount on your contract!
Do not mess about with this stuff, always read your contract and get things right. It ain't worth the risk!.
Reply 10
Original post by Mulligrubs
The legal owner is the person lending you the money to secure the car. In your case it's the finance company. Someone above said that insurance companies pay little to no attention of the legal owner status, this is wrong! They wouldn't ask if they didn't want to know who the legal owner is. If you lie on your insurance you may invalidate it and they reserve the right to cancel the policy or refuse to payout in the event of a claim. Also, if you check your finance contract you will probably find a clause in it that states you MUST tell the insurance company that they are the legal owner. So not only do you run the risk of invalidating your insurance, you are also in breach of contract with the finance company, who may demand its immediate return under repossession AND demand that you pay the outstanding amount on your contract!
Do not mess about with this stuff, always read your contract and get things right. It ain't worth the risk!.


My advice was that if it wasn't an option to state it was leased, then to say that you're the legal owner when getting quotes - but to correct it when calling to take out said quote. Some price comparison websites don't have a good option for leased vehicles, so in this case I'd say that I was the legal owner and explain it over the phone. This would never be an issue as it is not an attempt to mislead or defraud, just a means to an end (getting through to the next step of your insurance searches).

The difference in price is negligible and in most cases the change of ownership will not be reflected in the insurance premium. This is what I meant by "insurers taking little to no notice" - not that they disregard the answer given entirely.

~Matt
Original post by danty
My advice was that if it wasn't an option to state it was leased, then to say that you're the legal owner when getting quotes - but to correct it when calling to take out said quote. Some price comparison websites don't have a good option for leased vehicles, so in this case I'd say that I was the legal owner and explain it over the phone. This would never be an issue as it is not an attempt to mislead or defraud, just a means to an end (getting through to the next step of your insurance searches).

The difference in price is negligible and in most cases the change of ownership will not be reflected in the insurance premium. This is what I meant by "insurers taking little to no notice" - not that they disregard the answer given entirely.

~Matt


Hi Matt,

If there isn't an option to state it then you cannot confirm who the legal owner is at all and the default status is used (usually assumes the policy holder is legal owner). Fundamentally, this is a flaw with some comparison sites as they are notorious for not providing the correct/full details when they refer you to the main broker/insurance site which is why people should check the details carefully. Nevertheless, the onus is on the buyer to make sure all the relevant information is correct, hence the term "caveat emptor". However, yes, I totally agree that giving them a call is the best way to sort it out as it can be used as a means to an end and often you get a better deal over the phone, unless there are special discounts in buying online.

The price difference can sometimes vary greatly (either more expensive, or more cheaply). This is reflected in who an insurer wishes to insure, and how they underwrite their policies and determine risk. Sometimes it makes little difference as you said, but it really is based on how individual insurers rate risk. There are quite a lot of discrepancies between different insurers on this as different underwriting teams have different agendas. I say this from experience in the industry.

Either way, I agree in principle with your recommendation now that you have clarified it.
Reply 12
You are the legal owner for insurance purposes.

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