Insurance - Can the Policyholder not be the driver

AndyMc.....

Car_54 wrote: »

Or ask Motability for advice - it must be a common problem.

They own the car.

Ergates

facade wrote: »

If the insurance is in the parents name, any accidents or claims made previously by the son would have to be declared, and affect the policy, the only advantage I can see is if the parents have a full no-claims bonus that they want to use. The driver won't build any no-claims, and any accident would still affect any insurance he wanted to take out.

Don't do this. It's called "fronting" and is expressly forbidden by insurers - it's considered fraud and would invalidate the insurance policy.

If he is the main driver of the vehicle, the insurance *has* to be in his name. Doesn't have to be him that pays for it though.

AndyMc.....

Ergates wrote: »

Don't do this. It's called "fronting" and is expressly forbidden by insurers - it's considered fraud and would invalidate the insurance policy.

If he is the main driver of the vehicle, the insurance *has* to be in his name. Doesn't have to be him that pays for it though.

Sorry mate but you're wrong.

It's not fronting if you declare the main driver.

chrisw

Ergates wrote: »

Don't do this. It's called "fronting" and is expressly forbidden by insurers - it's considered fraud and would invalidate the insurance policy.

If he is the main driver of the vehicle, the insurance *has* to be in his name. Doesn't have to be him that pays for it though.

And the insurance doesn't 'have' to be in the name of the main driver either.

Johno100

Geodark wrote: »

Erm, if he is driving the car then yes he does have an insurable interest as you put it. insuring a car isn't just for the benefit of the owner, its also in case you dunch someone else!

Really doesnt make sense what you are asking.

Then I hope this helps explain the concept of Insurable Interest.

What Is an Insurable Interest?

So, you have to have an insurable interest in something in order to buy insurance for it. But what does that mean? You have an insurable interest in a person or thing if you would suffer a direct financial loss upon the destruction of the property or the death of the person. Put another way, you have an insurable interest if you benefit from the continued well-being and existence of the property or person.

Under this rule, you can!!!8217;t take out an insurance policy on your neighbour!!!8217;s car because you don!!!8217;t stand to lose anything if the car is damaged or totalled. Similarly, you can!!!8217;t buy a life insurance policy on your distant third cousin because his death wouldn!!!8217;t directly affect your finances. On the other hand, you have an insurable interest in your spouse because their death would cause severe hardship on your family. Similarly, you have an insurable interest in your home because the destruction from something like a fire or earthquake would significantly decrease your home!!!8217;s value.

Why Is an Insurable Interest Required?

Having an insurable interest in the person or thing you want to insure is a requirement because insurance policies are meant to compensate you for the losses associated with the damage to the property or the death of the person. If you have no insurable interest, you don!!!8217;t experience a loss that could be compensated. Consequently, you have no incentive to prevent harm to the person or thing !!!8211; rather, you may actually be incentivised to cause such harm in order to collect the applicable insurance benefits. Therefore, requiring an insurable interest helps to avoid insurance fraud as well as intentional acts of misconduct.

This requirement is also important, because it must be present in order to enforce or collect on an insurance policy. Different kinds of insurance require the insurable interest to exist when the policy is first taken out, when the loss occurs, or both. If it!!!8217;s not present at the requisite time, you can!!!8217;t force the insurance company to hold up its end of the bargain and pay you the proceeds from the policy you!!!8217;ve been paying for.

https://consumer.findlaw.com/insurance/do-i-have-an-insurable-interest.html

MovingForwards

A few years ago I borrowed my brothers car and insured it for my my use.

Several years ago I lent my then car to a mate and he insured it in his name. Before the age of online comparison sites.

In both instances the insurance companies were advised (1) I wasnt the registered keeper/owner it was my brother (2) my mate wasnt the registered keeper/owner.

I am sure even on comparison sites there is the question as to whether you are the owner and yes/no is ticked

Mojisola

Dad's insurance company did this - the insurance was in his name but he was specifically excluded as a driver. The insurance covered any driver over 50 so that any of the older family members could drive him places.

EssexExile

I think you've got the gist now OP. They need to ask their insurance company for a definitive answer.

unholyangel

Johno100 wrote: »

Then I hope this helps explain the concept of Insurable Interest.



https://consumer.findlaw.com/insurance/do-i-have-an-insurable-interest.html

An insurable interest is not just for property you own - else people would be unable to insure their PCP/HP or company cars.

It all came about because people used to take insurance out on public figures or ships that they had no connection with and the statute legislating marine or life insurance essentially meant that those insurance contracts were not insurance contracts but rather gambling/betting contracts which were unenforceable at the time (changed with the 2005 gambling act) as the only "interest" the insured had with regards to the subject matter was the insurance contract itself.


In other words, its one thing to take insurance out on (for example) a friends car that you'll be driving for 3 months (where a liability is likely to arise in ordinary circumstances). Its another to try and take insurance out on Elon Musks car when you won't benefit or have any liability if something happens to it (except for gain/loss from the insurance itself).

sheramber

MovingForwards wrote: »

A few years ago I borrowed my brothers car and insured it for my my use.

Several years ago I lent my then car to a mate and he insured it in his name. Before the age of online comparison sites.

In both instances the insurance companies were advised (1) I wasnt the registered keeper/owner it was my brother (2) my mate wasnt the registered keeper/owner.

I am sure even on comparison sites there is the question as to whether you are the owner and yes/no is ticked

the difference is the car owner wants the insurance in his name although he is not able to drive it , not the main driver's name.