teenage car insurance

mrs_mousse

I need some advice on insuring a car for teenage daughter who has recently passed test
I realise that having car insurance policy in the parents names with daughter as a named driver is called 'fronting' and is considered illegal but if you as a parent are the registered vehicle owner then does this problem still apply?

Quentin

No. It isn't fronting to have a teenager on as a named driver.

The fronting only comes into it if you aren't truthful about who is the main driver, and say it's the policyholder if it's really the teenager.

aylesby

£850 with Admiral or Elephant for 12 months comp
19 year old daughter, passed six months ago, £250 compulsory +150 voluntary excess, lives at home, goes to 6th form
Dad as nominated driver
If she were at university it would have been £780

cjgoodsell

Quentin wrote: »

No. It isn't fronting to have a teenager on as a named driver.

The fronting only comes into it if you aren't truthful about who is the main driver, and say it's the policyholder if it's really the teenager.

If the car is bought intending to be for the "young driver" then the insurance should be in their name.

Not only that they wont earn their own NCD if while on someone else policies and if it was perfectly fine to do this then spending a few years on someone elses policy could be wasted.

I have found an article online which can explain it best:

http://ezinearticles.com/?Car-Insurance-and-the-Practice-of-Fronting&id=1731876

http://news.bbc.co.uk/1/hi/programmes/moneybox/7052569.stm

I work for an insurance broker and I have seen a few policies where the claim was rejected because they were set up incorrectly.

I know its not cheap to insure a young person but whats better cheap insurance where you are not adequately covered. Or setting it all up in the young drivers name where you know its adequately covered? It may be expensive for a couple of years but do the pass plus which can reduce it by upto 30% for the first year.

Quentin

cjgoodsell wrote: »

If the car is bought intending to be for the "young driver" then the insurance should be in their name.

No.

There is no reason to prevent a policyholder adding a named driver on to a policy when that named driver is to be the main driver (irrespective of how old the named driver is). All you "should" do is ensure the main driver is correctly declared.

The named driver would have all the benefits of the policy, and when you suggest otherwise you are just scaremongering.

darich

Agree with Quentin.

Fronting is where the car is insured by a parent where they are declared main driver yet junior drives the car every day. Junior then benefits from daddy's no claims discount and years of experience to get a cheaper policy.

Naming junior on the policy is quite different. In this case it wouldn't matter who is the main driver since both are named on the policy. I would have thought the premium would be based on the higher risk driver with a possible reduction based on the older driver. Junior now gets no (or much reduced) benefit from daddy's no claim's discount and expereince. Junior also builds up their own NCD.

I guess being the policyholder would be you claiming to be the main driver - any named drivers get the same benefits on the insurance policy. So strictly speaking I'd imagine, the policyholder should be junior with daddy as a named driver rather than the other way round

pastra

There is nothing wrong with Parent insuring car registered in there name using spare NCD and having child as named and main user.
Whoever owns the car should insure the car. (insurable interest)
Whoever uses it the most should be the main user.