Is this "fronting" by another name ?

tescobabe69

My son takes his test shortly and is looking for a car and insurance.
"Someone" has suggested a cheaper way to insure the car, that being that his mother be the owner and insure the car, whilst he would be designated the main driver, he wont have bought the car (I will), it sounds OK, and does return cheaper quotes.
Is this legal ? And what are the possible downsides to this wheeze ?


Thanks in anticipation.

kingstreet

If he is named the main driver, there is no fronting involved.

However, until he starts having insurance in his own name, he won't start to accrue any NCD.

vikingaero

Agreed that this isn't fronting. Fronting is where Mum owns the car and tells the Insurers that she is the main driver for lower quotes and Son is simply a named driver. The problem is when Son has an accident and the insurance assessors sees a male blinged out car.

Fronting is becoming less of because more and more Insurers are simply rating the premium on the highest risk driver anyway regardless of whether they are a bit part driver.

peter_the_piper

kingstreet wrote: »

If he is named the main driver, there is no fronting involved.

However, until he starts having insurance in his own name, he won't start to accrue any NCD.

We did this for our daughter and was lucky enough to choose (Tesco) which built up ncd for named drivers, look around.

Wig

If you do this with Liverpool Victoria

What you may find is that when he comes to want to have insurance in his own name they (LV) will use the period he was main driver as a complimentary NCD for him to take to his own policy, he won't get an actual accrued NCD but he will get the monetary discount off their premiums which will then beat all other insurers hands down.

I just did this, and got a 9year equivalent NCD on a new policy for me after being with LV for 3 years as main driver on my OH policy. I have yet to see what NCD they actually give me on my renewal....it will be interesting when it comes.

[Deleted User]

Have you tried putting the son down as the owner, keeper and policyholder, with the mother as a named driver?

Aretnap

It's not fronting so long as you're honest about the fact that your son, not you or mum, who will be the person who usually drives the car. If the premium works out cheaper, perhaps it's because they think he'll be more careful with his mum's car than he would with his own.

harveybobbles

A friend's brother who is in his early 20's has a high powered car. His insurance is about £700 a year. But by adding his dad as a named driver redused the policy by £200. Even tho the only time his dad will drive the car is to move it off the drive to get his own car out.

tescobabe69

Wig wrote: »

If you do this with Liverpool Victoria

What you may find is that when he comes to want to have insurance in his own name they (LV) will use the period he was main driver as a complimentary NCD for him to take to his own policy, he won't get an actual accrued NCD but he will get the monetary discount off their premiums which will then beat all other insurers hands down.

I just did this, and got a 9year equivalent NCD on a new policy for me after being with LV for 3 years as main driver on my OH policy. I have yet to see what NCD they actually give me on my renewal....it will be interesting when it comes.

The best quote, so far, has been LV @ £1300 comp, he is 19, for a 1.4 KIA Rio, rural midlands.

Aretnap

harveybobbles wrote: »

A friend's brother who is in his early 20's has a high powered car. His insurance is about £700 a year. But by adding his dad as a named driver redused the policy by £200. Even tho the only time his dad will drive the car is to move it off the drive to get his own car out.

Even in my early 30s I found that after a few years of being young, free and single, my premium dropped by about 20% when I added my girlfriend, even though she had her own car and rarely drove mine. Apparently it's a sign that you're growing up and getting sensible... but it made me wish that I'd added a random female friend to my insurance years earlier.

Wig

Also you should try Admiral single car policy and multicar policy, they also do a 10 month policy with 1 full year NCB at the end of the 10 months which can be useful for youngsters building up their no claims. Though you then need to compare cost of policy per month with other quotes to find out who's cheapest.
but be warned they operate an automatic renewal, unless you tell them not to.

You also have to factor in
how much dicount he may get with LV for a policy in his own name.