Quizzes & Puzzles1 min ago
Is it Legal
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?
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?
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http://news.bbc.co.uk.../moneybox/7052569.stm
http://news.bbc.co.uk.../moneybox/7052569.stm
Hi david - my 20 year old son has just got his second car since passing his test 3 years ago -as its a 2 ltr Focus we have registered the car in Mr. Den's name and also insured it in hubby's name. My son is a named driver on the policy.
The excess on the policy is £250.00 for Mr. Den and £750.00 for my son.
The premium is £56.00 per month as opposed to £120.00 if it was in my son's name.
This is perfectly legal - as long as the son is named on the policy.
The excess on the policy is £250.00 for Mr. Den and £750.00 for my son.
The premium is £56.00 per month as opposed to £120.00 if it was in my son's name.
This is perfectly legal - as long as the son is named on the policy.
Because your son is 20 and it means you are fronting. Premiums go down with age so Mr Den insuring you as a named driver or vice versa wouldn't really make a difference. Making out Mr Den has the majority use of the car when it's your sons, to get the premiums down is illegal.
Car insurance firms are rejecting a thousand claims a year as some parents and children lie to save money, says the Financial Ombudsman Service.
A fraud called "fronting" occurs when a young person has a car in their own name, but the insurer is falsely told that a parent is the main driver.
Read the link...
Car insurance firms are rejecting a thousand claims a year as some parents and children lie to save money, says the Financial Ombudsman Service.
A fraud called "fronting" occurs when a young person has a car in their own name, but the insurer is falsely told that a parent is the main driver.
Read the link...
The car can be registered in the name of Mickey Mouse - it doesn't make a jot of difference as the log book is not proof of ownership.
This is really quite simple.
If you have declared your son is the main driver, all is tickety-boo.
If you have declared him as not being the main driver (with Mr Den being the main driver), then you are fronting. You are misrepresenting the situation to your insurance company to obtain cheaper insurance which is classed in the same bracket as a material non-disclusure. In such circumstances, insurers have a legitimate right to refuse claims.
This is really quite simple.
If you have declared your son is the main driver, all is tickety-boo.
If you have declared him as not being the main driver (with Mr Den being the main driver), then you are fronting. You are misrepresenting the situation to your insurance company to obtain cheaper insurance which is classed in the same bracket as a material non-disclusure. In such circumstances, insurers have a legitimate right to refuse claims.