Limited company, company car and car insurance

[Madeupname77]

I have a limited company with myself and my wife as the directors, and my wife as the sole employee. The company provides each of us with a vehicle for personal use, for which we pay BIK tax. My question is regarding insurance: In theory, we the company should insure the vehicles on our behalf as the owner of the vehicles, they would also be the policyholder for the insurance and we couldn't use or earn NCD on these policies.

In practice it seems hard to find company car insurance online for just 1 or 2 cars as opposed to a large fleet, yet there must be hundreds of thousands of limited companies in the same situation with no more than 2 vehicles which are largely for personal use - hence the large number of premium EVs on the road.

However, I spoke to a large national car insurer today, who said it was commonplace for limited company cars to be insured by the individual director/employee, and as long as the ltd co was listed as the owner and registered keeper (but not policyholder) it wouldn't be a problem and would be perfectly legal. I'd love this to be correct and of course we use/earn NCD as well......

Any thoughts, is this correct?

Thanks

[Mandat]

Madeupname77 said:

I have a limited company with myself and my wife as the directors, and my wife as the sole employee. The company provides each of us with a vehicle for personal use, for which we pay BIK tax. My question is regarding insurance: In theory, we the company should insure the vehicles on our behalf as the owner of the vehicles, they would also be the policyholder for the insurance and we couldn't use or earn NCD on these policies.

In practice it seems hard to find company car insurance online for just 1 or 2 cars as opposed to a large fleet, yet there must be hundreds of thousands of limited companies in the same situation with no more than 2 vehicles which are largely for personal use - hence the large number of premium EVs on the road.

However, I spoke to a large national car insurer today, who said it was commonplace for limited company cars to be insured by the individual director/employee, and as long as the ltd co was listed as the owner and registered keeper (but not policyholder) it wouldn't be a problem and would be perfectly legal. I'd love this to be correct and of course we use/earn NCD as well......

Any thoughts, is this correct?

Thanks

If an insurer is happy to issue a policy on those terms, then it must be correct.

[Powerfully Built Company Directors Secretary]

Not sure if this helps but..

I have a Ltd Co for my driving tuition and training work. My Ltd company leases my tuition car. The insurance is in my personal name, and the insurer is aware that the lease is to my Ltd company and the lease company are the RK and owner.

In your situation, providing the insurer is aware of who is the owner and RK there won't be any issues having the insurance in personal names.

Typically, having insurance in a Ltd company name is only going to be beneficial when you've got employees or a fleet. Then, any claims will go against the Ltd Company and not you personally.

My wife has a van insured through Aviva's business policy. That's in the name of the Ltd Company, and worked out £300 cheaper than having it in my name! All the same drivers mind, and they do multi vehicle as well.

[surveyor]

As an employee, this was how I had my company truck insured. Employer paid premium. It's how we still insure another one.

From my point of view it kept my NCB alive and reduced the company's premiums.

[MaxFromage]

Madeupname77 said:

I have a limited company with myself and my wife as the directors, and my wife as the sole employee. The company provides each of us with a vehicle for personal use, for which we pay BIK tax. My question is regarding insurance: In theory, we the company should insure the vehicles on our behalf as the owner of the vehicles, they would also be the policyholder for the insurance and we couldn't use or earn NCD on these policies.

In practice it seems hard to find company car insurance online for just 1 or 2 cars as opposed to a large fleet, yet there must be hundreds of thousands of limited companies in the same situation with no more than 2 vehicles which are largely for personal use - hence the large number of premium EVs on the road.

However, I spoke to a large national car insurer today, who said it was commonplace for limited company cars to be insured by the individual director/employee, and as long as the ltd co was listed as the owner and registered keeper (but not policyholder) it wouldn't be a problem and would be perfectly legal. I'd love this to be correct and of course we use/earn NCD as well......

Any thoughts, is this correct?

Thanks

Yes it is. But there are fewer insurers willing to do so each year. I was with Flow but they stopped last year. Now with Admiral...

[Sheepshanks]

This has come up a few times and supposedly some insurers are fine about it and some aren't.

I tend to think that normal consumer insurers don't always realise what they're getiing into, especially if you take out insurance by called their call-centre - people have had different answers off the same insurance companies.

If the car is leased then then the owner and RK are the leasing company so there's not normally any reference to whose name the lease is in, unless firms have started to ask that.

[MaxFromage]

Sheepshanks said:

This has come up a few times and supposedly some insurers are fine about it and some aren't.

I tend to think that normal consumer insurers don't always realise what they're getiing into, especially if you take out insurance by called their call-centre - people have had different answers off the same insurance companies.

If the car is leased then then the owner and RK are the leasing company so there's not normally any reference to whose name the lease is in, unless firms have started to ask that.

They almost all ask that now, distinguishing whether it's a lease in the name of the party insuring the vehicle or a business.

[Sheepshanks]

MaxFromage said:

They almost all ask that now, distinguishing whether it's a lease in the name of the party insuring the vehicle or a business.

Fair enough - makes sense as company 'owned' cars shouldn't be on consumer focused policies. Commercial lines insurance is usually much more expensive (hence the question regularly pops up here).