CompleteCar
Ask Us Anything

What's the deal with insuring a car on HP finance?

I was talking to a friend of mine the other day and were talking about the way that some of the car loans / financing deals that some of the manufacturers do. Some of them are HP so that means that you won't own the car until you've made the last payment, how does this affect your insurance, as isn't one of the first questions about the car being registered in your name? Does HP not mean it remains in the leasing company's name until you make the last payment?

Simon Mac (Dublin)

Jan 2014 Filed under: insurance


Expert answer

Hi Simon,

It's a technicality of HP that you don't actually own the car until the last payment is made, but it won't affect your insurance as the car will still be registered to you. Essentially, the finance company buys the car for you and you're repaying them the money that they gave you, the loaning of which is secured against the value of the car. If your name is on the registration document, which it will be, then you are the registered owner of the car.

Neil Briscoe - Complete Car Adviser
@neilmbriscoe


Read all questions...