Is it Legal

[davidk65]

A family has a son who has just passed his driving test and now has a car.
The cost of insurance for this teenager is very high. To reduce the insurance cost, the thinking is the car will be insured in the name of one of the parents who will put themselves down as the main driver, but in fact although the parent will occasionally drive that car it will be used by the son.
Is this fraud and is it legal?

[hc4361]

No, fronting is illegal.
http://news.bbc.co.uk.../moneybox/7052569.stm

[ChuckFickens]

and the really stupid thing is that direct line offer insurance policies that let a named driver rack up a no claims bonus.

What other possible use can there be for that other than for the situation described above, which as HC says is illegal!

[DEN53]

Hi david - my 20 year old son has just got his second car since passing his test 3 years ago -as its a 2 ltr Focus we have registered the car in Mr. Den's name and also insured it in hubby's name. My son is a named driver on the policy.

The excess on the policy is £250.00 for Mr. Den and £750.00 for my son.

The premium is £56.00 per month as opposed to £120.00 if it was in my son's name.

This is perfectly legal - as long as the son is named on the policy.

[ummmm]

It's not legal Den if it is your sons car and he has the main use of it.

[DEN53]

whats not legal ummmm - my car is in Mr. Den's name and I am the named driver on the policy. Its the same for my son's car - he is the named driver on the policy.

[ChuckFickens]

Did you read HC's link?

[LoftyLottie]

I'm illegal then like DEN. The insurance company is well aware that I am the main driver but my car is in my husband's name. He has a company car.

[ummmm]

Because your son is 20 and it means you are fronting. Premiums go down with age so Mr Den insuring you as a named driver or vice versa wouldn't really make a difference. Making out Mr Den has the majority use of the car when it's your sons, to get the premiums down is illegal.

Car insurance firms are rejecting a thousand claims a year as some parents and children lie to save money, says the Financial Ombudsman Service.
A fraud called "fronting" occurs when a young person has a car in their own name, but the insurer is falsely told that a parent is the main driver.

Read the link...

[DEN53]

yes I did read the article - but my son is named as the main driver. He has 2 years no claims bonus on his first car, which was registered in his name. So what you are saying is that I should'nt be driving my own car as its in Mr. Den's name but I am a named driver ?

[ummmm]

No loftie...it's for the under 25's who pay a higher premium and the parents pretend they are the main driver.

Under 25's, especially males, have more accidents...that's why they pay more.

[LoftyLottie]

"A fraud called "fronting" occurs when a young person has a car in their own name, but the insurer is falsely told that a parent is the main driver"

But ummmm, DEN has said that son's car is in his father's name and her son is named as the main driver which is the reverse of what you have quoted.

[DEN53]

Also ummmm - the car is registered with the DVLA in Mr. Den's name but my son is the named main driver.
Not as you point out registered in my son's name with Mr. Den as the main user.

[DEN53]

Thank you Lofty - I am glad someone can read.

[ummmm]

No...she said her son was a 'named' driver...not the 'main' driver. I answered to that post. If he is named as the main driver then that is a different matter.

[ummmm]

Hi david - my 20 year old son has just got his second car since passing his test 3 years ago -as its a 2 ltr Focus we have registered the car in Mr. Den's name and also insured it in hubby's name. My son is a named driver on the policy.

[DEN53]

I have just had a look at Mr. Den's policy on our car - I am only a named driver - so I suppose it must be illegal for me to drive our car.

I have also looked on the other policy and there does'nt seem to be a category for main driver - only named drivers, which Mr. Den and my son are both named.

[DEN53]

Just to reiterate - The Focus is registered with the DVLA in Mr. Den's name NOT my son - not as in the article the car is registered in the young person's name with the insurance in the parents.

[flip_flop]

The car can be registered in the name of Mickey Mouse - it doesn't make a jot of difference as the log book is not proof of ownership.

This is really quite simple.

If you have declared your son is the main driver, all is tickety-boo.

If you have declared him as not being the main driver (with Mr Den being the main driver), then you are fronting. You are misrepresenting the situation to your insurance company to obtain cheaper insurance which is classed in the same bracket as a material non-disclusure. In such circumstances, insurers have a legitimate right to refuse claims.

[DEN53]

Well I think all must be tickety-boo in the Den household as my son IS named as the Principal Driver of the Focus.

CASE CLOSED.

[redcrx]

den, if your son is main driver on the quote, i am wondering why it would be dearer if the car was in his name. that just doesnt seem right.

Surely changing the name of the owner will be frowned upon if it is done falsely and deliberatly to avoid the correct premium.