insurance fraud?

CHR15

This is precisely what I did 20yrs ago when I got my first car. Drove on my fathers insurance as a named driver.

I continued to do that until I paid off my £500 loan I took out to buy the car. When the loan was paid off, I took out my own insurance (because I could then afford to pay it)

I was insured 3PF&T for a couple of years.

Fraud? probably, but the car was legal on the road, and I was legal in it.

You people are being too harsh. If it is untaxed, uninsured etc of course report it, this is not the crime of the Century.

anewman

But it gives little real benefit. When you take out your own policy, you then have 0 years NCB which makes it almost as expensive as it would have been to be legal at the point you were fronting - so you did not save any money anyway. Ok ok there's directline and whatever who'll take NCB from being a named driver, but on the whole their policies are the most expensive so you have to pay for this benefit - and no doubt it's more expensive overall.

In the event of an accident it could have more dire financial consequences - for the parents as they knowingly took out a policy with false details. It could also prevent them getting insurance in future or make insurance so difficult to get the only options they have are more expensive policies.

All in all fronting is not worth it IMO. And I concurr with above, leave them to it - you won't change their mind and will just get a mouthful and jeopardise your friendship. I also concurr that it's not crime of the century. Let them make their own mistakes and they'll find out themselves. Lots of people do do it unfortunately, and the insurance companies are getting more aware and agressive on it.

[Deleted User]

CHR15 wrote: »

This is precisely what I did 20yrs ago when I got my first car. Drove on my fathers insurance as a named driver.

I continued to do that until I paid off my £500 loan I took out to buy the car. When the loan was paid off, I took out my own insurance (because I could then afford to pay it)

I was insured 3PF&T for a couple of years.

Fraud? probably, but the car was legal on the road, and I was legal in it.

You people are being too harsh. If it is untaxed, uninsured etc of course report it, this is not the crime of the Century.

It was fraud.

And as such you were not legal.

If you make a claim and the insurance company finds out about the fronting you can be prosecuted for insurance fraud and also for driving without insurance. Even if you do not make a claim you are still liable to be prosecuted for driving without insurance as making false statements to the insurance company makes your cover null and void.

vikingaero

It may or may not be fronting.

The problem with mentioning fronting on MSE is that people automatically scream fraud. It depends on:

(1) Whether the dad or the friend is notified to the Insurers as the main driver.

(2) Some Insurers automatically circumvent fronting by rating the policy on the youngest driver regardless of whether they are the main driver or a part bit named driver.

The dad could be the registered owner and the financial owner of the vehicle in which case it's perfectly permissable for him to insure it and add his son as a main/additional driver.

dacouch

subsoniccoyote wrote: »

It was fraud.

And as such you were not legal.

If you make a claim and the insurance company finds out about the fronting you can be prosecuted for insurance fraud and also for driving with insurance. Even if you do not make a claim you are still liable to be prosecuted for driving without insurance as making false statements to the insurance company makes your cover null and void.

Its actually the policyholder eg the mum or dad that can get prosecuted for fraud as it is they that signed a proposal form or accepted a quote and did not declare the relevant information (If applicable).

[Deleted User]

But the driver of the vehicle is driving without valid insurance so they are also liable to be prosecuted.

[Deleted User]

vikingaero wrote: »

It may or may not be fronting.

The problem with mentioning fronting on MSE is that people automatically scream fraud. It depends on:

(1) Whether the dad or the friend is notified to the Insurers as the main driver.

(2) Some Insurers automatically circumvent fronting by rating the policy on the youngest driver regardless of whether they are the main driver or a part bit named driver.

The dad could be the registered owner and the financial owner of the vehicle in which case it's perfectly permissable for him to insure it and add his son as a main/additional driver.

As long as the main driver is named on the policy correctly then it's fine.
However, the parent stating that they are the main driver when they are clearly not is the main issue and the one which prompts the cries of 'fraud'.

dan_essex

cxx666 wrote: »

Hi,

I have a querie, I believe a friend of mine may be unknowingly committing insurance fraud but I'm not 100% sure.

I am aware of the practise of "fronting" and what it is. However, would someone please clarify what the position is if the parent is the registered owner of the car.

Basically a friend of mine is the only real driver of their car, yet their dad is the registered owner of the car, and the insurance policy is in his name with my friend as a named driver. I think it amounts to insurance fraud, but I'm not sure and am reluctant to bring it up with them because when they were looking for a car and I tried to give them advice based on my experience, that their dad knew a lot more about motoring than I did and I can't be bothered getting a mouthful again unless I know I'm right

If someone would please clarify this I'd be very greaful, and it genuinely IS a friend and not me. I am the registered owner of my car and the insurance policy is in my name, hense why I dont really know the ins and outs of being on parents policies

why are you so concered about your friend's business?

jaydeeuk1

Remember to dial 999 too when he goes 31 in a 30.

nico26

So what happens when a husband is the registared owner and main named driver and the wife drives the car about during the day when he is at work.
Is this classed as fraud as well?