Named Driver Insurance Liable For Named Driver?

[Missydog]

I have a friend who put her sons car in her name on the insurance, so polcy in her name, he was down as a named driver. He has since got rid of the car but forgot to cancel the insurance and the new owner doesn't appear to have insured it, had an accident and the paperwork has come through to my friend.
Is she liable for this claim being the policyholder?

[ummmm]

Firstly, why did she put the policy in her name? If it was to keep the premiums down then that is called fronting and is illegal.

Secondly, didn't the son send off the paperwork when he 'got rid' of the car?

[rockyracoon]

No, insurance is the responsibility of the driver a far as I know. That being said, she might want to make sure the documents to transfer ownership have gone to DVLA.

[EDDIE51]

She committed an offence by putting the insurance in her name when it was her sons car. I assume that the new driver did not give details or stop after an accident so the insurance has come up as your friend. Did the son send off the V5 form (log book) to change the details of the keeper of the car? if he did then he has to tell the insurance that he sold the car and who to and when.
There is still the problem of the insurance being in your friends name when it was her sons car, this is an offence and the insurance will be void in any case.
Both she and the son could be prosecuted for driving without insurance and for making a fraudulent statement to obtain insurance.
As a first step she has to tell the insurance the date of the sale and who it was sold to.

[EDDIE51]

ummmm
If it was the sons car but insured as the Mums car then that is an offence no matter what the reason.

[ummmm]

Yes, but it's usually to keep the premiums down.

[EDDIE51]

Missydog has the son registered the sale of the car with the DVLA ? If not then your friend is in deep trouble.
She can be prosecuted for driving without insurance, failing to report an accident and making a fraudulent statement to obtain insurance. Additionally she will be responsible for paying the insurance claim out of her own pocket as the insurance company will immediately void the policy. This could cost £10,000s or more if it involves personal injury as well as damage to a car or cars

[ummmm]

methyl - I think Missy is saying that the son sold the car, didn't send off the paperwork and didn't cancel the insurance (which was in his mothers name and illegal if he was the main driver)

As it looks her friend still owns the car if the DVLA haven't received the paperwork.

That's where the insurance company would get the details, especially if the driver drove off.

[Missydog]

Thanks for all the replies! I thought she would be wrong in what she did, to make things worse I think she guaranteed the HP on the car and he hasn't told the finance company he's swapped it, or the new owner that it had finance on, the whole thing is a complete mess and not too sure how she's going to come out of it all without it costing her money.
As far as I know he has sent off the logbook but surely if he had DVLA would have had the correct details when the accident was reported?

[VHG]

When he sold the car did he send off the forms to the DVLA to say he had sold the car?

If not he may still be down as the registered owner and may have problems proving he sold it before the accident.

[EDDIE51]

That is what we need to know, did the son send off the V5 to the DVLA that is the crucial question?
If the car is still registered as insured by the Mum and the new driver has not insured it then the insurance database will show the Mum as the person who is insured to drive it.
If the new driver stopped after the accident and gave his details then he would be liable for the damage ( and be prosecuted for no insurance.) But I think the new driver has either not stopped or given the sons name after an accident.
Missydog , you say the insurance was in the Mums name ? then it is down to the Mum to cancel the insurance if it was in her name even though the insurance was illegal.

[hc4361]

So who is paying the insurance on the son's new car (you say he swapped the old one)?

It doesn't add up at all.

[EDDIE51]

^^^^ Yes if the insurance has not been cancelled or changed then the son is driving uninsured in the new car.

[Skyline D]

There are a number of issues here and an awful lot of posters who don't know the difference between being the registered keeper of a car and the owner of it. It's not the same thing people.

Firstly, as others have said, she was clearly "fronting" and that's fraud and the insurance is invalid. That however isn't terribly relevant here as the car had been sold and neither mother or son was driving it or owned it at the time. They cannot be held responsible for an accident in a car they no longer own.

I'm assuming son hasn't got a new car? There's no suggestion from the OP in either post that he does despite several answers presuming it.

If the car is on HP then he doesn't own the car in the first place and cannot sell it. I suspect this is a case of someone finding they cannot afford to run a car and getting shot of it unofficially for a sum whilst continuing to pay the finance off and insure it. In which case there's all sorts of problems to sort out. Not going to be easy to sort this one out I suspect, but in answer to the original question, they still won't be responsible for somebody else's accident. If the other driver had no insurance of his own then it will be treated as a driver uninsured case.

[Peter Pedant]

Thank God for Skyline
This could be a course question - discuss the liability of M S and the friend.

So far this is a civil issue - this happened to me after I HAD done all the paperwork because I am a 60 y o [and not a teenager thinking only of girls knickers] and know that it is important. You M S or F werent driving and therefore cannot be responsible for the X's accident. So write a nice letter to the injured party's solicitor or whatever and say that he car was sold on and so you are not responsible. Expect to be asked to er prove what you say. Make sure you keep copies of the letters.

[ at one point I had to cut my mothers hands off to stop her writing helpful letters on my behalf and not keeping copies or the letters themselves and then going all dippy about it all - I cant keep track etc..... ]

AS for fronting, backing or siding - wait and see. So far all that has happened is that there has been an accident and the other side is looking for someone to sue. A very profitable and reasonable occupation but something you must quickly to move is nothing to do with you.

You and your fren' should look on this as a useful learning exercise for the young 'un to experience that not following some rather obvious rules may Cost Money -lots of it !