Our team just called to tell you when your new vehicle will arrive and, of course, you'll now be searching for insurance. When getting a quote, the insurance company will probably ask you if you're the registered keeper of the vehicle. The term "registered keeper" is one of the more confusing bits of insurance jargon and even more so when it comes to leasing vehicles.
Who is the owner and registered keeper of a leased vehicle?
This question doesn't have a simple answer, as it's determined by your choice of financial product.
Contract Hire
With Personal Contract Hire (PCH) and Business Contract Hire (BCH) agreements, the vehicle remains the property of the funder and will be registered to them. In essence, you will "hire" it for a specified period and then return it - it will never be yours.
Finance Lease
Finance Lease agreements are similar to Contract Hire in that you will never own your vehicle. You are the named driver for the duration of the agreement while the funder is the owner and registered keeper of the vehicle.
Hire Purchase (HP) or Personal Contract Hire (PCH)
When a vehicle is purchased on finance (HP or PCP) the registered keeper will be the person paying the finance off. The owner of the vehicle is the finance company until the finance agreement is fully settled.
Those with more questions about insurance for lease cars or vans can find out more in our Lease Vehicle Insurance Guide, which explains when you should insure your new vehicle and what types of cover is required.
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