Insurance fronting - what would you do?

rev_henry

scotsman4th wrote: »

But there is absolutely no comparison between the sound of a modern 1.6 (or any 1.6) and an old V8.

Edit. Nearly forgot about the OP. The frontings only going to affect them, I'd just leave it.

No comparison between MPG either!

And Hammyman I WANT TO BE YOU with your capris and SD1s.

Ian_W

I would have a quiet word for their sakes as they may genuinely not realise that what they're doing amounts to fraud. Or the possible consequences if they do claim.

As has been said the insurer will pay out any third party claims but not their own damage IF they are found out after a claim - not very hard as insurers are well aware this goes on. HOWEVER, as the insurance was obtained by fraud the insurer can seek to reclaim ALL their costs from the policyholder. Not too bad if it's a couple of thou to mend a pranged car but imagine the hundreds of thousands it would cost for a serious personal injury to one of his young friends!

The AA webite contains the following info about young driver accident stats - No5 is particularly relevant:

1. 1 in 5 drivers are involved in a crash during their first year on the road
2. male drivers aged under 21 are 10 times more likely to have a car accident than male drivers aged 35 or over
3. young drivers have a higher proportion of crashes at night than older drivers
4. 1 in 8 British drivers are under 25, but a quarter of drivers who die in traffic collisions are in this age group
5. In 2007, 40% of passengers killed or seriously injured – meaning lost limbs, paralysis, brain injury and other life-changing injuries – were in a car driven by a young driver

dacouch

Hammyman wrote: »

Seconded. Anyone a victim would be paid out. The insurance companies have gone way beyond greedy with young drivers so I have no sympathy for them. When I was 17 in 1988, you could insure a 3.5L V8 car for the cost of two weeks wages - £170. Nowadays to insure a 1.2L car costs 3 months wages, £1000's, and they're not having any more accidents than we used to have back then.

There are many reasons young drivers premiums are so much higher than when you were a young driver. The main reasons being the government bringing in no win no fee injury claims and the stopping of "knock for knock" agreements between insurers which kept young drivers premiums artificially low

anewman

Ian_W wrote: »

I would have a quiet word for their sakes as they may genuinely not realise that what they're doing amounts to fraud.

It is true that they may not realise, in fact is it direct line who has almost been promoting it as acceptable with the TV advert with the daughter complaining she gets no no claims because she drove on her mum's policy?

Either way I'm not sure it is worth mentioning, chances are:

a) they're fronting because they do not wish to pay that much money on insurance (although as they purchased a new car we can somewhat safely assume they have enough cash to pay for the insurance - unless they purchased car on finance)

b) even if they are told they probably will not accept or realise the seriousness of fronting (not until an accident happens and they all get royally screwed over and find they cannot buy insurance or it costs so much that they probably will choose not to drive) so probably won't rush to change the insurance

c) they probably think everyone does it anyway

d) they'll probably just think you're being nasty or something

Sadly fronting means everyone pays more for their insurance in the end. Plus this kid is not getting any worthwhile no claims bonus built up and will still pay loads for insurance when he is insured under his own name whether at 21, 25, or 30.

mikey72

Ian_W wrote: »

I would have a quiet word for their sakes as they may genuinely not realise that what they're doing amounts to fraud. Or the possible consequences if they do claim.

As has been said the insurer will pay out any third party claims but not their own damage IF they are found out after a claim - not very hard as insurers are well aware this goes on. HOWEVER, as the insurance was obtained by fraud the insurer can seek to reclaim ALL their costs from the policyholder. Not too bad if it's a couple of thou to mend a pranged car but imagine the hundreds of thousands it would cost for a serious personal injury to one of his young friends!

The AA webite contains the following info about young driver accident stats - No5 is particularly relevant:
[/LIST]

That does mean 60% of people killed or seriously injured where in a car driven by an older driver, and 3/4 of drivers who die are elder.
So you safer with a younger driver then.

vikingaero

dacouch wrote: »

There are many reasons young drivers premiums are so much higher than when you were a young driver. The main reasons being the government bringing in no win no fee injury claims and the stopping of "knock for knock" agreements between insurers which kept young drivers premiums artificially low

Also if Kronkston hears that they are not paying the correct premium then they are dodging the 5% insurance premium tax on the correct premium.:eek: This makes your friends TAX DODGERS!

Lum

Ian_W wrote: »

As has been said the insurer will pay out any third party claims but not their own damage IF they are found out after a claim - not very hard as insurers are well aware this goes on. HOWEVER, as the insurance was obtained by fraud the insurer can seek to reclaim ALL their costs from the policyholder. Not too bad if it's a couple of thou to mend a pranged car but imagine the hundreds of thousands it would cost for a serious personal injury to one of his young friends!

The point being the insurance pay out and then take their insured to court for the money. The victims don't have to wait until the insurance have got this money.

If they're happy with this risk then just leave them to it. No-one but themselves will lose out if it all goes wrong. (vs. them paying full price for insurance)

FWIW, I waited until I was 21 to get my first car, a 14 year old Ford Escort 1.3 Popular Plus, £800 for the car (overpriced, looking back) and £650 to insure it. My family is a bit better off these days, which means my younger brother got a car bought for him :mad: though that's mainly to enable him to get a job when they now live in an area with no work, but mainly so my parents can get a lift home from the pub for free.

SingleSue

My first car was a Renault 14TL, cost me £150, had just passed my test and was 20...it cost me £301 for TPFT.

This was in 1991.

Rolandtheroadie

rev_henry wrote: »

No comparison between MPG either!

And Hammyman I WANT TO BE YOU with your capris and SD1s.

Think I got between 15-20 with my sd1 and my RR v8 but Hammymans had capris an thats an ambition I've not forfilled as of yet. 2.8 or 3.0s tho.

frothey

anewman wrote: »

Plus this kid is not getting any worthwhile no claims bonus built up and will still pay loads for insurance when he is insured under his own name whether at 21, 25, or 30.

A lot of insurance co's will give named drivers the NCB now.

A bit of jealousy in this thread - who's saying they've bought a souped up sports model and he is driving like a t**t? A lot of small cars can look sporty but have little 1.0's under the bonnet - maybe the mum just wants her son in something modern, safe and economical, after all if all 17yr olds are going to crash, better to have them in something new than a 20yr old banger.....