If I lend my friend a car, how does it work with the log book, tax etc ?

[WynkenBlynkenandNod]

As long as it passes the MOT she's going to borrow it on a long term loan. Can the insurance be in her name and the log book in mine or do we need to transfer the car into her name ? Many thanks.

as you will still own the car the log has to remain in your name, all you have to change is the insurance

Thanks Barbie. The man in the garage when I asked later was adamant that the insurance document had to be in the same name as the log book and that I would have to take out temporary insurance, which at a quick look will cost a fortune. Was he definitely wrong then ?

the alternative is to add her to your insurance and she pays the difference?

Some insurance companies do ask if the car is registered in your name but it doesnt have to be. My dp has insurance on our car but the log book is in my name as i brought the car.

Presumably if the car is written off, you will want to benefit from the payout, not for the cheque to be sent out payable to your friend.

I think we'll run into problems if we do a policy in my name with her as named if anything happens as she is a sports coach with points.

I wonder if it would be OK if I am a named driver on her policy ? It's getting the Post Office to agree to tax it I'm worried about.

You have to have a financial interest in the car to insure it (its one of the core principles of insurance) - thus a partner/spouse may take out the insurance on a car owned by their partner/spouse, but your friend couldn't insure it as she has no financial interest.

If you want it to be a loan, then you would have to add her as a named driver to your policy, and then get her to pay the tax/insurance etc.

Oh yes, hadn't thought of that SueW. I have known her since school and we're no spring chickens, I actually trust her more than my brother to do the right thing if it came to it. It's just working out how to sort it, I don't really want to have to put the log book into her name then back to mine at some point as would increase the numbers of owners.

Sorry, bit behind here CMOT. So would that be OK for policy in my name with her as named driver even though she would be the main driver ?

You'd need to talk to your insurer about it really.

Does increasing the number of owners really matter ?

Probably not I guess, it's just that at the moment it is just one and I'd prefer it to stay that way as I think it looks better when selling but I suppose it isn't that important. Thank you for your all your help, much appreciated.

Is there a way for you to be the policy holder on the document and her the main driver?

Lottie is correct - you would have to be the policy holder, but her as main driver. And there sholdn't be a problem with her being the main driver even though yuo own the car. I was the main driver of dh's car, and him the main driver of mine for a couple of years !

Actually thinking about it if she only wants third party then it would be her financial interest that the insurance is for so maybe she could be the policy holder....

If you get her added on to your policy then I would ask about getting your no claims bonus protected, although not sure if you can do this half way through a policy

The car has been garaged for the last 8 months or so, so hasn't been insured. It has just gone straight through MOT (hurray !) so one less thing to worry about.

I spoke to HSBC as they came out well on a Moneysupermarket quote but they said they can't do me as policy holder and her as main driver. However More Than, who I was last insured with say that we can do this. I hadn't thought of my No Claims bonus so thanks for this.

Fingers crossed I can get her details from her this afternoon and get a cover note in the post. She has a horrendous ex and is having a rough time with divorce and her car is getting repossessed in a day or two so I'm trying to make this as quick, painless and cheap for her as possible. This thread has been a big help, thank you