Advice please

PINGA14

My brother has his own car and insurance. My nephew has just passed his test and bought a car that he is registering in my brothers name. He wants my brother to insure the car in his name so that my nephew is only a named driver, to reduce the cost of his first insurance policy.

I'm sure that I have read somewhere that this option is no longer viable as the insurance companies have cracked down on this practise.

I would be greatful for any advice
Thanks in advance

shelly

I've read this too somewhere recently. Its called fronting. Search on the forum for it and you will find lots of info.

Would it really reduce your nephews insurance though, even if it was allowed? Surely when he gets his own policy in his name he will still have 0 NCB?

brazilianwax

Seriously seriously bad idea for your nephew and your brother.

As Shelly suggests, just search this forum for 'fronting'.

PINGA14

shelly wrote: »

I've read this too somewhere recently. Its called fronting. Search on the forum for it and you will find lots of info.

Would it really reduce your nephews insurance though, even if it was allowed? Surely when he gets his own policy in his name he will still have 0 NCB?

He's only 17 and this will be his first policy, so very expensive. Quotes he's had are between £1200 and £1500 :eek:

PINGA14

Thanks for the info both of you.
Will have a look now.
xx

shelly

PINGA14 wrote: »

He's only 17 and this will be his first policy, so very expensive. Quotes he's had are between £1200 and £1500 :eek:

I understand what you are saying but surely when he gets a policy in his own name for the first time he won't have any NCB so will still be as expensive? It will be still be his first policy whether he does it now or in 5 years time. Him being a named driver on a policy won't count for anything.

brazilianwax

PINGA14 wrote: »

He's only 17 and this will be his first policy, so very expensive. Quotes he's had are between £1200 and £1500 :eek:

Agree with Shelly. Plus, even if getting a policy in your brother's name drops the price, it'll be even more expensive when the insurers refuse to pay out because of the fronting!

(Happened to a friend at school. I bought and insured my car in my name (£900), her dad bought and insured hers in his name (about £400 or something). She wrote her car off on the way to school one day. Insurance refused to pay because:

• her dad had his own car
• the car she was driving was registered in her name :doh:
• she was driving it to school which she did every day, therefore she was the main driver (they'd declared her dad as the main driver)

She lost a few grand on that car, and had to fork out a few more for the next one.

It's just not worth it.)

PINGA14

shelly wrote: »

I understand what you are saying but surely when he gets a policy in his own name for the first time he won't have any NCB so will still be as expensive? It will be still be his first policy whether he does it now or in 5 years time. Him being a named driver on a policy won't count for anything.

True, but in 5 years he will be over 21 and the premium will be less anyway.

I've done a search on fronting and amazingly, direct line seem to allow this practise as long as it's not to save money !

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I have done the same with my 17 year old son. The car is registered in my name, the insurance is in my name with him as a named driver, but he is registered as the main driver. The insurance company are happy with this as long as I am not doing it to save money !!!!

I don't go along with this - put the insurance in the son's name as it will cost a fortune now and when he comes to get his own he will have no 'no claims bonus'. The way I see it is - while I am paying for it I will get the cheapest, but by the time he needs to get the insurance in his own name - he will be over 21 and it will be considerably cheaper for him then, why pay more in the meantime?

PINGA14

And another one, through direct line again

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Quote:
Originally Posted by nickmack
I'd be interested to hear who this policy is with

It's a new one to me if you can register a driver as named and the main driver.


Direct Line allow named drivers to build their own no claims bonus.

I have this as well for myself and son.
The car is registered and insured to me.
My son is on the policy as a named driver but is quoted [ in writing] as the main driver.
All these wrinkles were ironed out before I took the policy out.
While he was learning to drive I was down as the main driver, when he passed his test I phoned to put on record he had now passed and would be using the car more hours a week than me and they put in on the policy that he was the main driver and sent me a revised copy, when we changed the car it was all transferred to the new policy.
As a named driver on OH's policy I was given 5 years no claim discount againt this policy also.
All this does come with a price though for the young drivers.
My access is £200........... my Son is loaded to £650.00 access!
All this is with Direct Line who I and OH have been with for the last 6 years, and yes my son is building his own NCD up while on my policy but if he doesnt insure with Direct Line when he insures himself it isnt worth the ink on the paper as no other companies will pick up and honour these discounts.

shelly

PINGA14 wrote: »

True, but in 5 years he will be over 21 and the premium will be less anyway.

If he stays claim free in that 5 years (not saying he won't but most claims are made in first year after passing test) Even a claim made as a named driver has to be declared when taking out your own policy. Also if he claims it could impact on your brothers insurance as he is policy holder so has to declare it.





Direct Line will give named drivers NCD but only if the named driver stays with Direct Line when taking out a policy. In my experience they are one of the most expensive companies so by the time they have taken off the discount and got the quote to a reasonable figure, its the same figure as another company would have done.