insurance fraud?

dacouch

I agree with the above and in my experience young male drivers who insure their OWN car in their parents name (As pglic mentioned they often have higher performance cars than their peers who insure correctly) have a lot more claims than people who insure their own car in their own name have a lot more claims.

There is a fairly good chance they will have a claim and there are numerous ways they can discover a fronted car

movingforward2010

i dont know anyone under 20 that has their own insurance!

dacouch

wxmlad wrote: »

i dont know anyone under 20 that has their own insurance!

If the sons oor daughters are the main users and the Insurers are not aware then potentially there are a lot of parents that could be prosecuted for fraud, be out of pocket as they have to pay the claim themselves AND find themselves effectively balcklisted from buying ANY type of Insurance again in the future.

Most people do not realise the possible problems this can cause and would not do what they do if they realised.

sarahg1969

wxmlad wrote: »

i dont know anyone under 20 that has their own insurance!

My son did - it was £1700 for the first year, £1200 for the second year, and £600 for his third year. Then he decided he didn't really need a car. He probably won't have one for years to come, so his NCD is wasted.

Altarf

dacouch wrote: »

If the sons oor daughters are the main users and the Insurers are not aware then potentially there are a lot of parents that could be prosecuted for fraud

No chance. It would be too expensive to bother with and from the insurers point of view they can achieve the same effect much more simply.

In the event of a claim if the insurer has evidence of fronting they will refuse the claim and cancel the policy, and tell the policyholder that they can sue them if they disagree with the decision.

When the policyholder comes to buy their next insurance policy, they would have to declare the cancellation with the massive increase in price. And if they don't declare the cancellation, in the event of a claim back to stage one and the insurer refuses the claim and cancels the policy again.

Anyway back to the OP, as has been mentioned it is perfectly proper to have someone own a car and to be the insured person, and have someone else as a named driver who is the main driver, provided the insurance company has been told that. The problem is people don't tell the insurance company...

From the insurance company point of view it can be obvious when fronting has happened. For example the policyholder owns several cars, a new family size car and a cheap Nova/Fiesta/Clio which also has an 18 year old named driver. The accident occurred 100 miles away from the insured address, where the 18 year old named driver goes to college. etc, etc

anewman

Insurers will often look at whether the youngster uses the car to go to college or work. If, for example, the youngster is at Uni away from home and had the car with them, and their father is the policy holder - this is clearly fronting. Another example, if the youngster uses the car to go to work, and the parent has their own car that they use to go to work - then clearly this is fronting. Obviously there's no way to prove how long each person has driven the car, and the parent may have never even sat in the car.

dan_essex

wxmlad wrote: »

i dont know anyone under 20 that has their own insurance!

I had my own insurance at 17. It cost be £800 to insure an old banger.

Amanita_2

wxmlad wrote: »

i dont know anyone under 20 that has their own insurance!

Both my children did. Cost me an absolute fortune as I paid the premiums for them.

custardy

dan_essex wrote: »

I had my own insurance at 17. It cost be £800 to insure an old banger.

bought my renault 9 for cash and paid up the insurance!!:rotfl:

walkingaline

Why do you care? I know of plenty of people that do this. And, jd87, how exactly are they making your insurance more expensive?