ChatterBank0 min ago
no claims bonus
If a named driver on my insurance has an accident do i lose my no claims bonus?
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Thanks. Was thinking about putting my daughter on it, as insurance in her name would be expensive, Trying to think of options of doing it. Presumbly if she brought a car It would have to be registered in my name for me to get the insurance in the first place? Would I be allowed to do that as I already have a car of my own and have 5 years no claims.
bobdeb - the insurance companies are very aware of this scam they call 'fronting'.
If you insure the car with you as main driver and your daughter as named, and she has an accident they will investigate very closely indeed.
http://news.bbc.co.uk/1/hi/programmes/moneybox /7052569.stm
If you insure the car with you as main driver and your daughter as named, and she has an accident they will investigate very closely indeed.
http://news.bbc.co.uk/1/hi/programmes/moneybox /7052569.stm
If you already have your own car, then your no claims bonus is already in use anyway, so no savings there. A new policy (if correctly underwritten) would be rated on your daughter anyway, so best to bite the bullet and do everything above board, in her name, so that she can start earning her own no claims bonus. Free insurance on a new car is a good way in for her (if you have that much to spend!)
As Ethel rightly says, �fronting� is well known to insurers. This is what it could mean to you:
Firstly, when you make the proposal to add your daughter�s car to your policy you will be asked if the car belongs to you. You will have to say �yes� because if you do not your proposal will simply be rejected. So you will have two cars, both (as far as your insurers are concerned) belonging to you.
If your daughter is unfortunate enough to have an accident which results in an insurance pay-out, the insurers are likely to make enquiries about the second car�s ownership. (They will see that �fronting� may be a possibility). They will be extensive and intrusive enquiries. If their conclusion is that the car is not actually yours but your daughter�s they will invalidate your policy retrospectively on the grounds that you made a false declaration to them. I�ve seen it done.
This will mean that you will be liable to pay for any damage or injuries caused and your daughter may face a charge of driving without insurance. The minimum penalty for this is six penalty points. As a result, if she has held her full licence for less than two years it will be revoked by the DVLA and she will revert to provisional status.
Furthermore if it can be proved that you had been driving since the false declaration was made you too could be charged with the same offence, or the CPS may content itself with a charge of allowing the second car to be driven uninsured. This will mean six points for you too.
I believe you can do what you want to do by means of a fleet policy. The way you are proposing is perilous and the loss of your NCB will be the least of your worries. You must decide whether the potential saving is worth the risk.
Firstly, when you make the proposal to add your daughter�s car to your policy you will be asked if the car belongs to you. You will have to say �yes� because if you do not your proposal will simply be rejected. So you will have two cars, both (as far as your insurers are concerned) belonging to you.
If your daughter is unfortunate enough to have an accident which results in an insurance pay-out, the insurers are likely to make enquiries about the second car�s ownership. (They will see that �fronting� may be a possibility). They will be extensive and intrusive enquiries. If their conclusion is that the car is not actually yours but your daughter�s they will invalidate your policy retrospectively on the grounds that you made a false declaration to them. I�ve seen it done.
This will mean that you will be liable to pay for any damage or injuries caused and your daughter may face a charge of driving without insurance. The minimum penalty for this is six penalty points. As a result, if she has held her full licence for less than two years it will be revoked by the DVLA and she will revert to provisional status.
Furthermore if it can be proved that you had been driving since the false declaration was made you too could be charged with the same offence, or the CPS may content itself with a charge of allowing the second car to be driven uninsured. This will mean six points for you too.
I believe you can do what you want to do by means of a fleet policy. The way you are proposing is perilous and the loss of your NCB will be the least of your worries. You must decide whether the potential saving is worth the risk.
If your daughter is young and newly qualified, you and she might like to investigate the Pass Plus driving scheme which can help to reduce premiums for young drivers. More details here:
http://www.passplus.org.uk/about_pp.asp
However, I think the driver may have to complete this scheme, for which you don't have to take a further test, within 12 months of passing their driving test.
http://www.passplus.org.uk/about_pp.asp
However, I think the driver may have to complete this scheme, for which you don't have to take a further test, within 12 months of passing their driving test.
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