Car Insurance

What do the experts think one should do in this scenario.

Couple returning to UK . A local dealer has agreed to buy their Spanish car the day before they leave as living in the campo a car is necessary HOWEVER a month before they are due to go the insurance on the car expires. As is the ruling in Spain one has to pay for an annual insurance regardless.

As driving without insurance is a no no has anyone any suggestions.

Sell to the dealer the car now, i.e. the one month before they go ,then rent a car for the month.

Or....

Pay the 12 months insurance, divided that by 12 months against what renting a car for a month would be, then lose the remaining 11 months insurance.

That's the best option then...hire a car for a month. Cheers

Or ask the dealer to cover the car on his commercial policy for a month

Did cross our mind this could be a possibility. Worth checking..cheers

Even though car insurance is annual you can pay quarterly. Arrange to pay in this way...the first quarter. Then cancel the future payments with your bank. That way you can keep the car for the month and drive it and be insured without paying the full years premium!

There are some insurance companies that insure you for a short term, the others that spread the payments do it in different ways, 

1. They get paid and you are actually paying a loan company, and you can not stop paying, this happened to my daughter, 

2, They will let you pay monthly, but if you have a accident you have to pay the years sum before they will payout, so check the small print

jon

I believe in Spain most, if not all, insurance companies provide one month’s ‘obligatory’ (third party) cover after the policy has expired.

However, be aware, again most, if not all, can insist on two months’ notice of intention not to renew. (read your policy).  OK not paying probably means they will not chase you but they may.

Are you sure a one month automatic extension of cover is correct John? 

In the UK there used to be invariably 14 "Days of Grace" (which was a restricted "Road Traffic liabilities only" cover) but this was changed about 10 years ago.  Now cover in the UK generally ceases completely on the renewal date, unless confirmation of renewal is received prior to expiry.

I understood the UK changed their stance to comply with an EU edict and therefore would be surprised if your post is correct, but will put a slice of humble pie in the micro wave if necessary.

Acer. Thanks, I did say I 'believe',   rather than state it as a fact.  I would call my broker but it is Saturday so they are not open today.

PS     By total coincidence,  I just received an email from my insurances broker regarding medical insurance, They ‘reminded’ me of the two months’ notice required to cancel an insurance policy.

QUOTE:  "With most Private Medical Policies due for Renewal in January 2016 your 2 Months Notice time clock has started ticking, decisions must be made by 31st October 2015" 

some people seem to have more coincidences than the average bear

floella have you asked the insurance company for a 1 month policy?

using the dealers insurance may not be the best solution and i cant see many doing it, they may have a couresty car you could hire

best option IMO is sell and hire car

Another car insurnce question:

I recently seen a news report about car insurance in the UK where parents were insuring cars for their kids and naming the kids as a named driver on the policy. The report was saying although this is done with good intentions it is fraud as the parents are not the main driver etc.

In Spain most cars are normally insured for anyone to drive (normally over 25 and have held valid licence for at least 2 years and with the owners permission which is what my policy says).

So does Spanish have the same in regard to the main driver?

So does Spanish have the same in regard to the main driver?

No Tadd, I dont believe so. In Spain it's the car that's insured not the drivers although as you say there are age and other restrictions on who can drive the insured car. 

Tadd1966, I was inquiring on behalf of a friend who, according to my understanding, when they asked their ins.co.were told actual final date of policy was 2 weeks later than renewal date and that it would be noted they would/could drive it for another 10 days but if anything happened to the car it would be down to them.

Elderly couple so not sure if this is what they were actually told or they believe it to have been said. If the former perhaps what Johnzx wrote is correct and there is 3rd cover for a month.

Have decided for an expat selling a house...if one can...here is a nightmare.....seems there are even more hoops to climb through than buying......

Allianz, who have a blog on this site, puts it:

In Spain it is the vehicle that is insured and not the person – most motor insurances in Spain will cover the main driver and any driver over a certain age (usually 25/30 years old). You cannot drive anyone else’s car under your own insurance. You need to be covered under their vehicle policy.

As to main driver, I would imagine it would be the same here. After all, there are no claim discounts so the driver with the highest discounts would take out the insurance and let anyone over 25 drive it who would not have the same discount.

Interesting point, though.

All insurance, throughout the world is subject to the doctine of utmost good faith.  In practice this means that both contracting parties, you and the insurer, must disclose all material facts prior to the policy being incepted.  If either party fails to do so the contract is voidable at the option of the other party.

So if you fail to disclose that a principal driver is a youngster the policy becomes voidable.  If you deny the vehicle is to be driven by a young person that is misrepresentation/fraud and actionable in the courts.  The insurer will also be entitled to sue and recover payments they are obliged to make under legislation.  In the UK this happens frequently, I don't know about Spain they seem to be behind the rest of Europe on such matters.

The only name my insurance company requires is mine. They do not ask for named drivers or young drivers. The policy and certificate clearly state that the car is covered for anyone who has a valid licence (not necessarily a Spanish one), has my (they suggest written) permission and is aged between 25 and 70. They all enjoy the same level of cover and benefits as myself.

Steve