Personal Contract Hire, Car Insurance for business use?

[manjack]

I am planning to lease a car on Personal Contract Hire. I have decided to avoid the Business lease option due to the BIK hassle.

At the moment, on my old car my insurance is Social domestic and pleasure + commuting + personal business use.

I would want to keep the same 'usage' details on the leased car insurance.

Will this be allowed? I am confused because I will be doing 'Personal' contract hire and then using the car for 'Personal business use'.

[northernladuk]

This help?

http://www.contractoruk.com/expenses...insurance.html

[manjack]

This article is mainly about insurance for a car that I own outright.

My question was about a leased car using 'Personal contract hire' route.

In a nutshell, Can I have 'business insurance' on a car that I have leased under the terms of 'personal contract hire'?

[northernladuk]

I don't see why not. They only difference is they are the registered owner but you are the registered keeper. It's still you insuring it.

[WTFH]

Yes, you can have business use on a PCP.

[manjack]

I am going for PCH, not PCP.

[northernladuk]

I am going for PCH, not PCP.

I thought you were still the registered keeper however it's financed so you need to take out insurance just the same whichever method.

What does the contract say?

I also thought it was Business class 1 you needed whichbyou have to ask for as its not standard but in many cases it doesn't make a difference to the price.

[WTFH]

I am going for PCH, not PCP.

Whatever acronym you use, it's a personal finance agreement. My answer still stands.

...but as NLUK says, make sure you get class 1 if you are a contractor - "commuting" and "permanent place of work" are phrases that don't apply to contractors, and insurers are good at avoiding paying out.

[FrontEnder]

The 'personal' in PCH/PCP relates to who the finance is with, not how you use it. If people weren't allowed to use leased cars for business use, there wouldn't be much of a market for it.

If you're really not sure, you should probably check with the company you're leasing from. If for some reason you can't use it for business use, then the deal isn't for you.

[psychocandy]

I thought you were still the registered keeper however it's financed so you need to take out insurance just the same whichever method.

What does the contract say?

I also thought it was Business class 1 you needed whichbyou have to ask for as its not standard but in many cases it doesn't make a difference to the price.

Yep will agree. These days it generally costs no extra for class 1 use. I guess its so common that people need it these days.

My Mrs does business travel but the people she works with are stupid. They refuse to get business use because employer wont pay for it. They just dont get the 45p a mile idea....

Wouldnt like to have an accident in the middle of the day, away from your normal place of employment without class 1 insurance. All it takes is for insurer to find out you were driving on business and thats possibly £10K or more down the swanny for a written-off motor.