Is it Legal

[davidk65]

A family has a son who has just passed his driving test and now has a car.
The cost of insurance for this teenager is very high. To reduce the insurance cost, the thinking is the car will be insured in the name of one of the parents who will put themselves down as the main driver, but in fact although the parent will occasionally drive that car it will be used by the son.
Is this fraud and is it legal?

[redcrx]

david, Put yourself down as a second named driver and that may reduce premiums.

[redcrx]

think ive got this now.
David, what you are suggesting is fronting and illegal

Den, yours is whats called a "fronted risk". some insurance companies allow it to happen, and will take the risk themselves. They will pay out on genuine claims (hence the difference in the excess) but more and more companies are not offering such obvious incorrect policies because of the loss of premium to them.

[DEN53]

Obviously, my son's excess is £750.00 on the policy so the insurance company are recognising that he is a young driver and has 2 years no claims bonus. If they thought this was illegal to name him on the policy then they would not have accepted it.

I take your point red and thank you for not making us sound like criminals. xx

[redcrx]

as long as everyone is aware of the situation den. Just watch though because these sorts of policies wont be around for long.