New Driver (Test Passed) Insurance

[w8pmc]

Quick question & hopefully a straight forward one.

Currently we have 3 cars on an Admiral Multicar Policy. My car with me as Policyholder & wife as named driver, Wife's car with her as Policyholder & me as named driver & lastly my middle Son's car (bought by me & V5 in my name) with me as Policyholder, wife & middle Son as named drivers (we've been using his car for driving practice alongside his formal lessons)

Middle Son is taking his test on Wednesday & assuming he passes, what would i need to change as regards insurance for his car?

Just did a trail update quote changing him from a Provisional license holder to a newly qualified Full license holder & the overall policy premium only increased by £277 which seemed very low. That said I then realized this would still have me as the Policyholder on his car with him still being named & I'm not sure this is the correct way forward.

No option on the Admiral website to alter him from being named to being the main Policyholder etc. so no doubt that would require a phone call.

The car would remain legally owned by me & me as the Reg'd keeper for the time being, so should i just do as above & change his License status but keep everything else the same, or am i best calling Admiral & requesting a quote to swap the Policyholder status for his car?

[NGee]

The simple answer is 'what does your policy say', if you are not sure then, as you say, the best thing is to speak to them.

However bear in mind that it doesn't matter who the policy holder is, it is the 'main driver' that is the important bit.
Insuring a car in your name so as your son can get get cheap insurance on a car which is, to all intents and purposes, his car, is called 'fronting' and is illegal.

(Not suggesting you're trying to do that, just pointing it out!)

[Emeye]

If he is going to be using the car more than you, he needs to be the policy holder - you can be the administrator of the policy.

I found the online portal is limited to only one change at a time. Even speaking to them it can get messy. And they charge you more for making a change on the phone.

[w8pmc]

NGee said:

The simple answer is 'what does your policy say', if you are not sure then, as you say, the best thing is to speak to them.

However bear in mind that it doesn't matter who the policy holder is, it is the 'main driver' that is the important bit.
Insuring a car in your name so as your son can get get cheap insurance on a car which is, to all intents and purposes, his car, is called 'fronting' and is illegal.

(Not suggesting you're trying to do that, just pointing it out!)

Thanks for the response.

Checked the Policy (twice) & can see no reference, thus why I went online to see what I could change regarding 'his' car & I couldn't change Policyholder/Named, only his license status or employment details etc.

Definitely not about the cost, but clearly was thrown at such a small increase changing his license status, which made me think that can't be right.

That's what i thought regarding 'fronting' which was why i posted, but as you say, likely I'll only get the accurate info direct from Admiral, so will give them a call

[w8pmc]

Emeye said:

If he is going to be using the car more than you, he needs to be the policy holder - you can be the administrator of the policy.

I found the online portal is limited to only one change at a time. Even speaking to them it can get messy. And they charge you more for making a change on the phone.

Thanks. He will indeed be using the car more than me from a physical journeys perspective. Based on mileage though, it's likely I'll do more miles in the car annually as he'll be doing purely local journeys to/from College etc. but I'll be using the car for the occasional trip to my office in Leeds (my M5 has become a little expensive in the fuel dept.)

[Drawweight]

Also if he’s only a named driver he’s not getting the chance to accumulate a no claims bonus.

Cost might be a factor in the first couple of years but it will pay in the long run when he eventually needs insurance in his own name.

[Drawweight]

Also if he’s only a named driver he’s not getting the chance to accumulate a no claims bonus.

Cost might be a factor in the first couple of years but it will pay in the long run when he eventually needs insurance in his own name.

[Dark Star]

For me I would put your middle son on his own policy with you and your wife as named drivers.
I would also put the car in his name to keep him from potentially getting stopped if they see him in a car owned by someone flagging up as older than him. Although by no means necessary it would keep things simple.
His car as in registered to him with his insurance would be my choice.

[Pica-Pica]

Dark Star said:

For me I would put your middle son on his own policy with you and your wife as named drivers.
I would also put the car in his name to keep him from potentially getting stopped if they see him in a car owned by someone flagging up as older than him. Although by no means necessary it would keep things simple.
His car as in registered to him with his insurance would be my choice.

Probably sensible to change registered keeper to him, but only if he is to keep the car (and he may well want his own choice soon).
It’s really a case of searching around for the best arrangement, and the best price, but also a policy that will allow him to accumulate no-claims bonus.

[w8pmc]

Dark Star said:

For me I would put your middle son on his own policy with you and your wife as named drivers.
I would also put the car in his name to keep him from potentially getting stopped if they see him in a car owned by someone flagging up as older than him. Although by no means necessary it would keep things simple.
His car as in registered to him with his insurance would be my choice.

Fair point, but not keen on adding a keeper (car was purchased brand new) which if i swap to him I'm assuming would happen?

The car is funded via a PCP (in my name) as he's still only 17, so would having it legally owned by me but reg'd to him not add confusion?

Bottom line, i realize it's gonna cost to have a 17yr old insured on his own car as a newly qualified driver (car is Insurance group 1 though which should help), but i of course want to stay the correct side of rules/regs, but without adding hassle.

[QuartzDad]

w8pmc said:

Thanks for the response.

Checked the Policy (twice) & can see no reference, thus why I went online to see what I could change regarding 'his' car & I couldn't change Policyholder/Named, only his license status or employment details etc.

Possibly doesn't allow provisionals to be policyholders. If you change his licence status and save the change, the option to make him the policyholder may become available. Although from memory of when my kids were that age, Admiral were none too keen to quote for 17yo policyholders.

[TwigtheWonderkid]

Emeye said:

If he is going to be using the car more than you, he needs to be the policy holder - .

Why? There's no law that says the main driver must be the policyholder. So long as the insurer knows that one of the named drivers is the main driver as opposed to the policyholder, and are happy (and no doubt charge appropriately).

[NGee]

Emeye said:

If he is going to be using the car more than you, he needs to be the policy holder - you can be the administrator of the policy.

I bow to your greater knowledge.
I assume you work in the car insurance industry so would be grateful if you could explain what a 'policy administrator' is and also why the main driver has to be the policy holder.


ETA Before you answer you might like to read Twig's reply above.

Edited by NGee on Tuesday 21st June 10:32

[w8pmc]

QuartzDad said:

Possibly doesn't allow provisionals to be policyholders. If you change his licence status and save the change, the option to make him the policyholder may become available. Although from memory of when my kids were that age, Admiral were none too keen to quote for 17yo policyholders.

Did wonder that, but following License change it then moved forward to pay the additional premium. Didn't proceed as he's only taking his test tomorrow & no guarantee he'll pass. Only tried to gauge what the premium might increase by, but all i learnt is the increase would not be significant, but that being him staying as a named driver.

[chopper602]

We have 'normal' three cars on the drive - MrsTheWife and I have a car each, which we're named drivers on each. The kids(!) use a Twingo, which has the V5 in my name. The policy holder is #1 son, with me as a named driver and he's accumulated 6 years no claims. #1 daughter has just passed her test and I've added her as a named driver to the existing policy, which increased the premium by about £250. They both use the car, so no one is the 'main' user and in time, #1 daughter will no doubt want her own car and will have to start the no-claims process (some insurance companies use named driver status into account).

[NGee]

w8pmc said:

QuartzDad said:

Possibly doesn't allow provisionals to be policyholders. If you change his licence status and save the change, the option to make him the policyholder may become available. Although from memory of when my kids were that age, Admiral were none too keen to quote for 17yo policyholders.

Did wonder that, but following License change it then moved forward to pay the additional premium. Didn't proceed as he's only taking his test tomorrow & no guarantee he'll pass. Only tried to gauge what the premium might increase by, but all i learnt is the increase would not be significant, but that being him staying as a named driver.

It doesn't matter that he stays as named driver, as long as it is noted he is the MAIN driver.

This might mean he does not accrue his own NCD, as mentioned earlier, however I think some companies will now allow time as a named driver to count towards NCD on their own policy. (obviously assuming there is no claim!)

[Pedro25]

Dark Star said:

For me I would put your middle son on his own policy with you and your wife as named drivers.
I would also put the car in his name to keep him from potentially getting stopped if they see him in a car owned by someone flagging up as older than him. Although by no means necessary it would keep things simple.
His car as in registered to him with his insurance would be my choice.

This all the way, teenage daughter her named as owner of her car with wife and I named as drivers, she does the most miles in the car and drives it all of the time,

[surveyor_101]

Simple answer- if your the main driver and he will not drive that often its fine, if he will be the main driver its illegal and you could get caught fronting.

If he isn't going to be the main driver he can earned named ncb and insure him as main after a year.

If its really will be the main driver and you won't be bite the bullet and insure him as main then you have no choice. Note: he doesn't need to be registered keeper.

[Fish]

No question.

Take out a separate policy with him as policy holder either then add you and the wife as named driver or cost dependent leave it insured for you two under your existing arrangement.

"If" he were to have a crash or claim it would be against his policy and won't effect your record and the premium you pay.

I wouldn't bother having the V5 changed as hassle and devalue of car. by all means do a letter confirming you are the owner and registered keeper and he has permission to drive.

You shouldn't have any issues with him having a separate policy on a car he doesn't own etc.

[rxe]

IMO NCD is massively overblown. It’s like going into a shop with no prices, and being told that “this item” is a bargain because it is 60% off. A long time back Mrs rxe was very smug that she had NCD protection when an accident went 50.50 - until they loaded the policy, so 60% off still meant a massive increase.

Based on experience with my son, the cost of the base policy seems to be the most important factor. He passed his test at 19 (no driving tests or lessons during Covid), and his insurance in a car which is apparently Group 22 according to the internet is £1100 a year. I suspect that were he 17, it would be a lot more. So desperately getting bent over as a 17 year old to acquire an NCD seems like a mugs game.