Advice needed on car insurance for company car

[Madmax86]

Hi all

New to the forum, long term reader but never contributed.

I currently own a car and have insurance with about 10 years no claims discount.

I am about to receive a brand new Tesla through my company (3 year lease). It will be purely for personal use.

My questions...

1. Regarding car insurance for the new Tesla, I know this has to be done via the company. Do I need specialist business car insurance or will regular car insurance do as long as it is in my company name?
2. I will no longer be driving my current car so won't have personal insurance for at least 3 years. What happens to my 10 years ncd?

[northernladuk]

Do you want us to drive it for you as well?

Not worth researching all this before you bought in to a 3 year lease? Have you spoken to your insurer?

I believe you'll need company insurance. There is business insurance but I think this is for if you are the owner of the car. Speak to your current insurer first as they may offer the insurance you need which will be a lot easier. I have personal insurance with Admiral but they do both business and company insurance.

Transferring NCB is at the insurers discretion so you need to get a copy of your NCB from your current insurer then ring around a company car insurer and find one that will accept the NCB evidence from your personal account.

Same goes the other way around. Some personal insurance companies will take evidence of NCB from company car useage and apply it back on to personal.

Easiest way is if your current insurer does both products.

[fatJock]

I did exactly the same a few months back and found my options to be quite limited. There are lots of insurers that insure small fleets but very few that do individual vehicles.

Also when I was insuring Tesla Y’s were fairly new to the UK and not all would underwrite them. I went to NFU in the end after a recommendation from a friend and, although fairly expensive I did manage to get a company policy.

My existing insurers couldn’t do it but NFU took proof of no claims and transferred it across as although it’s company insurance it’s still named drivers only.

With regards to NCD after a company vehicle lots of insurers take proof of company car NCD in the same way when you go the other way. Normally all that’s needed is a confirmatory letter or the same type of insurance renewal / NCD proof you’d normally show if requested.

[Madmax86]

Ok so just contacted the company I am leasing the car through (Vanarama) and they put me in touch with their insurance department who gave me a quote.

Turns out I can just insure in my name as a normal policy, even though it is a lease via my company. This is only possible because I am the director of my company. If I was an employee only, then this wouldn't have been possible.

So I can use my own name, I get to carry over my NCD, and use my business account to pay for it.

There is also a clause at the bottom of the quotation that reads the following...

"We are aware that the vehicle on this policy is a company leased vehicle.
In the event that the vehicle is written off or stolen, any payment will be paid to the company as named on your schedule"

Happy days!

Thanks all for your input.

[northernladuk]

If you are happy with that fine but doesn't sit right with me. It's like a contractor buying their insurances through their accountants and what not. Never a good idea as we've seen. I'd feel much happier finding my own quote on terms I like from a reputable company.

I guess it works if they offer it but someone will have their hand in the till and the option won't be the best one for you IMO.

[malvolio]

I would be more concerned about buying (or leasing) a personal item plus costs with company money. For instance, does the business exemption on BIK apply if the company never uses the vehicle? Does the policy cover you for personal use - after all, the correct description of a company vehicle is one that is not kept at home and is not (usually) available for personal use. And commuting is not a business expense.

Plus your savings may well disappear at the next budget. EVs are in the taxation firing line.

[Madmax86]

If you are happy with that fine but doesn't sit right with me. It's like a contractor buying their insurances through their accountants and what not. Never a good idea as we've seen. I'd feel much happier finding my own quote on terms I like from a reputable company.

To me it seemed to good to be true too but I have also confirmed the above with my current insurer, who is also Admiral, and they have confirmed it is fine to do. Even better actually as I can simply transfer my existing policy and change the vehicle, but ensuring that I am the registered keeper and not the vehicle owner and that it is a lease.

I guess it works if they offer it but someone will have their hand in the till and the option won't be the best one for you IMO.

Not really, it's just something you don't understand as you haven't experienced, doesn't mean it's not legit.

[Madmax86]

I would be more concerned about buying (or leasing) a personal item plus costs with company money. For instance, does the business exemption on BIK apply if the company never uses the vehicle? Does the policy cover you for personal use - after all, the correct description of a company vehicle is one that is not kept at home and is not (usually) available for personal use. And commuting is not a business expense.

That is the whole point of BIK tax. It is items you are buying through the company for personal use. Yes the policy is for personal domestic use, not business use so wouldn't be claiming any mileage etc. Everything else including maintaining and insuring the vehicle will be through the company.

Plus your savings may well disappear at the next budget. EVs are in the taxation firing line.

BIK tax is currently 2% until 2025 and then it will increase by 1%. That is still pittance. Road tax on ev will start 2025. I can't see anything drastic happening in the next 3 years so am not worried.

[malvolio]

That is the whole point of BIK tax. It is items you are buying through the company for personal use. Yes the policy is for personal domestic use, not business use so wouldn't be claiming any mileage etc. Everything else including maintaining and insuring the vehicle will be through the company.

BIK tax is currently 2% until 2025 and then it will increase by 1%. That is still pittance. Road tax on ev will start 2025. I can't see anything drastic happening in the next 3 years so am not worried.

Thanks for the lesson. Sadly you are wrong. BIK is tax on the benefit value you receive from the company. It assumes you are using company assets for personal use, so if you have a company car and get to take it home at night, then you pay tax on that personal mileage. If the car is only used for personal business, then all its costs are taxable, including servicing and insurance, since it is not a company vehicle. Just the same as you buying a 4K UHD 52 inch as your PC monitor.

As for EV taxation, that's road tax. Nothing to stop them banging in a levy on EVs to cover the taxes lost vs petrol/diesel cars.

It's your money and your risk, I don't really care either way. But you should at least be aware of what those risks are. If you're that sure you are right, run it past HMRC or a good accountant.

[northernladuk]

To me it seemed to good to be true too but I have also confirmed the above with my current insurer, who is also Admiral, and they have confirmed it is fine to do. Even better actually as I can simply transfer my existing policy and change the vehicle, but ensuring that I am the registered keeper and not the vehicle owner and that it is a lease.

Did Admiral give you a quote? If the numbers are similar I'd much perfer staying with someone I know. But your choice.

Not really, it's just something you don't understand as you haven't experienced, doesn't mean it's not legit.

I am not saying it's not legit, I'm saying it's not always the best option. When a compay refers business to a separate area it's usually done for business reasons, not for the customer. Kickbacks, discounts etc. Don't have to offer the best policies because it's a captured audience etc. We (and I) have experienced it in other areas. In the contracting world we've seen lots of examples where people buy their insurances and contract reviews via accountants and agents and it's just not the best service for the customer. Same with agencies referring people to umbrellas. The lists the agencies use for umbrella referrals are based on kick backs, not the quality of the service the customer gets.

Just my opinion that if I had Admiral and some company I've never heard or dealt with before that is linked to the lease I'd go for Admiral every time without a doubt.

Sounds like you've done everything right and you'll be absolutely fine, i just don't like buying stuff based on referrals like this.