The big problem with buying cars through your company, solved.
Many company directors opt to purchase a car through their business, for a combination of both personal and business use, as this can bring certain tax advantages. In recent years, it has become particularly common when upgrading to electric vehicles, for which the government offers some generous tax breaks. However, the practice isn’t entirely without consequences.
When a director buys a car through the company, it is the company – and not the director – who becomes the registered owner. When they then go to insure the car, many standard market insurers require the policy to be taken out in the name of the registered owner.
In the short term, this isn’t necessarily a problem. They will still be legally covered to drive and covered against the risks on the road.
However, a director taking out insurance in a company’s name does create one significant issue -their no claims bonus is transferred to the company.
If the company director subsequently wants to buy a new car in their own name, they will be unable to access a no claims bonus. If they only have one no claims bonus, which is now in the name of the company, they may have to pay a full premium on any other car they drive.
Unfortunately, it neither makes little difference how safe a driver they are, nor the fact that their skill and experience remain the same. A director with a clean, continuous driving history may need to start from the ground up, paying a full premium and re-earning their no claims bonus year-on-year, as though they are a newly qualified driver.
This of course leads to one very critical financial impact: a no claims bonus can make the difference between a premium that costs hundreds of euros and one that costs thousands.
A common sense solution
At DUAL, we have a different approach. Unlike other more traditional insurers, we believe that the most important factor is the driver, not the car they are in.
If your client has been driving a company car for years with no claims, and then decides to invest in a nice classic car for the weekends, they don’t suddenly become a higher risk driver.
That’s why our Specialist Motor Policy considers your client’s entire no claims history. Rather than looking at a no claims history that has been made artificially short by your client’s inability to transfer their no claims bonus to a new vehicle, we calculate premiums in accordance with your client’s driving history on their current and previous cars.
Our Specialist Motor Policy allows your clients to insure multiple cars in their own name and hold on to their no claims discount. We offer the same bonus across all their vehicles. If your client has a clean driving history, we look to offer them a full no claims discount that can save your client up to 60% of their premium, on every car they are insured on.
As a result, your clients can enjoy the benefits of buying a car through their company, without being penalised for doing so through higher premiums on any future vehicle purchases.
In addition to protecting your client’s no claim discount, our policy provides one of the market leading comprehensive policy coverages.
In the event of an accident, property damage is covered up to €30,000,000. Meanwhile, should a total loss occur, we offer an agreed value settlement.
Your client is protected against fire, theft, and attempted theft. And any personal belongings in the vehicle that are lost or damaged are covered up to €1,000.
For comprehensive car insurance with a sensible approach to no claims discounts, speak to DUAL.