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parents insuring kids cars

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I was advised last year by a broker to insure my son as a named driver on insurance in my name and have done the same again this year. The log book is in my name and there are two people allowed to drive the car - myself and my son. I did not use any of my existing no claims bonus on my main car for the car that he drives. Nothing specifically says I am the main driver. So is this also classed as fraudulent or not?
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  • System
    System Posts: 178,348 Community Admin
    10,000 Posts Photogenic Name Dropper
    I would think that unless they are told differently, insurers would consider that the person in whose name the insurance was taken out in is the main driver..

    This would probably be considered as fraudulent and the insurance probably void.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • N79
    N79 Posts: 2,615 Forumite
    The proposer is usually considered the main driver. Are you sure that this is not stated somewhere in the small print?

    I found this to be a problem when I wanted to insure my own car, but because my wife drove the car every day (I communted by train), I was not able to insure my own car! Insurance had to be in my Wife's name only. I have since lost my no claims as it has been too long since I held insurance. (Previously, we both had cars and no doubt we will both have cars again in the future. My original plan was to insure 1 year in my Wife's name and then 1 year in mine so that we both kept our no claims bonuses. As explained, this was not possible.)
  • If your son is the main user of the car he should be named as the main driver on the vehicle. It is considered fraudulent otherwise.
    Also being a named driver means he won't be building up a NCD (unless with certain companies) when he does come to take out insurance.
    If he had it in his own name from the outset the second year would probably have dropped considerably anyway once he had earned his first year's NC.
    The following is taken from the RAC website:
    My child has just started driving and I want to get insurance for them. What is the best way to insure them?
    It is always best to insure young drivers on their own policies. This way they will collect their own no-claim bonus which will help lower their insurance premiums. Often parents insure their children as secondary drivers on a policy with themselves as a main driver when actually the child is the main driver of the car. Parents often think this is the cheapest way to get their children on the road, however, often this isn't the cheapest way and if we find out that the young driver is the true main driver we may not pay out on a claim. This is because the information you have provided is incorrect and the insurance becomes invalid.
  • jill2002
    jill2002 Posts: 272 Forumite
    I have done the same with my 17 year old son. The car is registered in my name, the insurance is in my name with him as a named driver, but he is registered as the main driver. The insurance company are happy with this as long as I am not doing it to save money !!!! ;)

    I don't go along with this - put the insurance in the son's name as it will cost a fortune now and when he comes to get his own he will have no 'no claims bonus'. The way I see it is - while I am paying for it I will get the cheapest, but by the time he needs to get the insurance in his own name - he will be over 21 and it will be considerably cheaper for him then, why pay more in the meantime?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • nickmack
    nickmack Posts: 4,435 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    jill2002 wrote: »
    I have done the same with my 17 year old son. The car is registered in my name, the insurance is in my name with him as a named driver, but he is registered as the main driver. The insurance company are happy with this as long as I am not doing it to save money !!!! ;)

    I'd be interested to hear who this policy is with as what you've said doesn't seem clear. It's a new one to me if you can register a driver as named and the main driver.

    If the car is registered in your name and the insurance is in your name, you should be the main driver. Adding your son as a named driver is fine in these circumstances if he drives occassionally. If it's his car and/or he's the main driver, the policy should be in his name.
    I don't go along with this - put the insurance in the son's name as it will cost a fortune now and when he comes to get his own he will have no 'no claims bonus'. The way I see it is - while I am paying for it I will get the cheapest, but by the time he needs to get the insurance in his own name - he will be over 21 and it will be considerably cheaper for him then, why pay more in the meantime?

    Direct Line allow named drivers to build their own no claims bonus. Insurance at 21 does decrease a little but not as significantly as if you had 3-4 years no claims bonus to use.
  • nickmack wrote: »
    I'd be interested to hear who this policy is with

    It's a new one to me if you can register a driver as named and the main driver.


    Direct Line allow named drivers to build their own no claims bonus.

    I have this as well for myself and son.
    The car is registered and insured to me.
    My son is on the policy as a named driver but is quoted [ in writing] as the main driver.
    All these wrinkles were ironed out before I took the policy out.
    While he was learning to drive I was down as the main driver, when he passed his test I phoned to put on record he had now passed and would be using the car more hours a week than me and they put in on the policy that he was the main driver and sent me a revised copy, when we changed the car it was all transferred to the new policy.
    As a named driver on OH's policy I was given 5 years no claim discount againt this policy also.
    All this does come with a price though for the young drivers.
    My access is £200........... my Son is loaded to £650.00 access!
    All this is with Direct Line who I and OH have been with for the last 6 years, and yes my son is building his own NCD up while on my policy but if he doesnt insure with Direct Line when he insures himself it isnt worth the ink on the paper as no other companies will pick up and honour these discounts.
  • nickmack
    nickmack Posts: 4,435 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    mrsthrifty wrote: »
    My son is on the policy as a named driver but is quoted [ in writing] as the main driver.

    Seems a strange paradox, I can't fathom out why Direct Line would word a policy like this, plus it becomes confusing should you switch to another insurer. If you try to insure using the same logic, this could get you into trouble.
    While he was learning to drive I was down as the main driver, when he passed his test I phoned to put on record he had now passed and would be using the car more hours a week than me and they put in on the policy that he was the main driver and sent me a revised copy, when we changed the car it was all transferred to the new policy.

    This sounds correct, but seems to indicate he is now considered the main driver, not named driver. What confuses me is how they seem to indicate he is both!
    My access is £200........... my Son is loaded to £650.00 access!

    No suprise with the excess because of the risk with younger drivers.
    my son is building his own NCD up while on my policy but if he doesnt insure with Direct Line when he insures himself it isnt worth the ink on the paper as no other companies will pick up and honour these discounts.

    Yes, this is a problem and also what makes these kind of schemes a bit of a gimmick. The insurer can hook you in because you can't take your NCB elsewhere. A bit like the 10 month 'accelerator' policies that allow you to build up NCB quicker but aren't recognised by all insurers.
  • jill2002
    jill2002 Posts: 272 Forumite
    Yes, my policy is also with Direct Line. I also have it in writing on the policy documents that he is the main driver. But it is stressed that they will not do this way if your reason for doing it is to save money.

    I also have another policy with them with the car in my name where I am the main driver. In fact when I started this policy I didn't have any no claims discount as I hadn't had insurance for a long time, so I added my husband onto it as a named driver and I got full no claims discount - even though his insurance wasn't with them !!

    Good old Direct Line - came up trumps for me.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • vikingaero
    vikingaero Posts: 10,920 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Every time one of these threads appears then the world and his wife shout "Fronting!" "Void! Void! Void!"

    Fronting does not occur where:

    (1) The insurer is aware and confirms in writing that the offspring is the main driver.

    or

    (2) The insurer rates the premium on the youngest driver irrespective of who is the main user.
    The man without a signature.
  • jill2002
    jill2002 Posts: 272 Forumite
    Direct line have definately rated my premium for the youngest driver - but it is at least half of the price than if it was in his sole name.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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