• This topic has 15 replies, 11 voices, and was last updated 1 year ago by austen.
Viewing 16 posts - 1 through 16 (of 16 total)
  • Company car insurance?
  • austen
    Full Member

    Sorry, I couldn’t find anything relevant when searching, but this place seems to know everything:

    I’m a director of my limited company and the business is leasing me a car for the first time (which is nice of them/me).  Company mileage will be fairly limited but I think I need the company to purchase the insurance rather than doing it privately?

    If I’m correct on this, does anyone have any recommended places/brokers to go to.  I’ve a feeling I might get a little stung as my business address is city centre (with no parking) but home is sleepy countryside with appropriately low premiums.

    Thanks and apologies for knowing nothing!

    woody2000
    Full Member

    If the company is providing the car, they need to insure it. You have no insurable interest in the car as an individual, the company does.  No advice on an insurer, but I’d imagine any insurance provider will do.

    johndoh
    Free Member

    ^That

    The insurance is purchased by TaxDodgeLimitedCompany, not by the individual.

    nickdavies
    Free Member

    You can just buy insurance privately and put it through the books. The posts above are incorrect that the company has to insure it, you can still have an insurable interest. You would insure it at your home address assuming it’s used in that way and not just kept at the office.

    Just declare it to the insurance obviously (and ensure they will cover it – as they may not, but just change insurer) Ring your insurance company you are with now and ask the question anyway.

    I had company cars insured in this way myself for long enough, as I didn’t want to lose my ncb.

    I now lease in my own name and that is no different, I don’t own the car but I still insure it.

    TaxDodgeLimitedCompany

    Ahem… you know that’s a sweeping generalisation that’s not in the slightest bit true in most situations?

    poly
    Free Member

    If the company is providing the car, they need to insure it. You have no insurable interest in the car as an individual, the company does. No advice on an insurer, but I’d imagine any insurance provider will do.

    Not strictly speaking true. Firstly, anyone driving a vehicle caries a liability which can be insured, in fact MUST be insured by law. Secondly, in the event that you crash your company car – whilst ordinarily the liability for repair is with the company I can see no reason why the employee could not contract to be responsible for that in the same way as they would with a bike to work scheme bike etc?

    However, I think if HMRC were to get suspicious the fact the company was not insuring it would point to something odd, and perhaps look like a tax dodge. Ironically, the BIK is no different if you are or are not insured via the company.

    When you take out the policy they will normally ask where it is kept. So the registered office address shouldn’t necessarily sting you; versus its home address.

    intheborders
    Free Member

    I’m a director of my limited company and the business is leasing me a car for the first time (which is nice of them/me). Company mileage will be fairly limited but I think I need the company to purchase the insurance rather than doing it privately?

    If you wrote what you’re actually doing rather than trying to be a smart-arse you’d have got back more accurate answers.

    Company car, company insurance – be careful how you answer insurance questions, remember you’re just the user. Presumably the car will be registered in the company name?

    IdleJon
    Full Member

    whilst ordinarily the liability for repair is with the company I can see no reason why the employee could not contract to be responsible for that in the same way as they would with a bike to work scheme bike etc?

    And if the car is written off?

    johndoh
    Free Member

    Ahem… you know that’s a sweeping generalisation that’s not in the slightest bit true in most situations?

    It was a bit of light-heated fun FFS

    austen
    Full Member

    Thanks for the help everyone, though still not sure I know what the answer is.


    @intheborders
    – sorry, wasn’t trying to be a smartarse, it’s the first time I’ve had a company car and the first time I’ve leased a car so it’s all a bit new.  Genuinely didn’t know what the rules are and can’t seem to find anything definitive in what I’ve read so far.

    I’ve phoned a couple of companies for quotes and Direct Line seemed happy to insure in my name with the company noted as having an interest, LV said no, and Aviva wanted a fortune for a policy in the name of the company (which would allow my employees to drive it).  This latter option may be the right one, just trying to work out if it’s essential and can’t be the only one who’s done this?

    It’s a funny place here sometimes…

    revs1972
    Free Member

    It’s a funny place here sometimes…

    Yes, as demonstrated in a previous thread , there are a number of people on here who regard anyone who runs a limited company and uses perfectly legal avenues to make their personal / companies tax liabilities more efficient, as being spawned from the devil himself.

    As an aside, I run a van and a pickup through the company. I occasionally use the pickup for personal miles and therefore pay the £110 a month BIK on it. Bit expensive for the roughly 1000 personal miles I have done in 2020/2021 tax year. I could tell the accountant I haven’t done any personal miles but hey ho… , i’ll pay my dues. Vehicles are insured through the company as business use with SD & P on top for the pickup . Still cheaper to insure separately rather than a fleet insurance though.
    Looking at changing the pickup to a Discovery Sport PHEV soon, so will be interesting to see how that effects the insurance..

    aikon
    Free Member

    Having spent 9 months battling a post accident insurance dispute that ultimately ended up with me in court vs the ‘at faults’ insurer and their legal team I’ve since insisted that my company car is insured by the company providing it, it was a messy and stressful 9 months… lesson learned

    Rich_s
    Full Member

    That sounds intriguing. Is there any more information you can share?

    intheborders
    Free Member

    sorry, wasn’t trying to be a smartarse, it’s the first time I’ve had a company car and the first time I’ve leased a car so it’s all a bit new.

    You need to separate ‘you’ and ‘the company’.

    Who’s actually leasing it, ie who’s name is it in?

    And if it’s your Ltd company and you’re a Director, have you looked at just claiming mileage (PPM) money instead rather than getting involved with BIK etc? It’s a few years ago, but when I looked at running my 435d as a ‘company’ car through my Ltd company it was more expensive (all in) than just buying it and paying myself the PPM – obviously making sure you do at least the full 10k pa 😉

    tonyf1
    Free Member

    The company will need to arrange insurance as it’s an asset of the business. You’ll have to pay the BIK and then claim mileage back at HMRC rate as a Director / Employee. Also be aware not all insurance companies will allow you to accrue NCD on the company insurance so you personally could end up with 0 years NCD after 2 years. So if you go back private your insurance quotes will sky rocket.

    Unless the car is going to be expensive I wouldn’t bother doing above to save a bit of VAT on the monthly.

    intheborders
    Free Member

    Unless the car is going to be expensive I wouldn’t bother doing above to save a bit of VAT on the monthly.

    It’ll be more worthwhile with a cheaper car as there’s #tapering’ issues on VAT and Corp Tax claims etc.

    austen
    Full Member

    In case this helps anyone in future – Aviva have a clear website that allows you to choose the right type of cover for company cars.  As a bonus the call centre staff answered my questions really thoroughly.

    A few places I called seemed happy to offer private insurance with the company mentioned, but given @aikon’s post above it sounds worth having a squeaky clean policy.  The premium was a little higher, but worth it for the peace of mind.

    Thanks all.

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