Is this an example of insurance "fronting"?
Discussion
Hi
I am a named driver on my parents car (mercedes c class). I have 5 yrs NCB.
Is it "fronting" if I become the main policy holder on this car and my parents are both named drivers? I will drive the car (to gain more and more experience, freedom, etc), but my mum may drive the car every day of the week to/from work (because I work in Central London). This could change and I become the main driver depending on my professional circumstances (I would only have time to drive the car in weekends as it stands).
This may mean the insurance changes from where it is (Direct Line) to Elephant (who would accept my named driver NCB as standard NCB) and add my parents as named drivers on the policy.
I am under the impression fronting is a father owning a fast car and getting his son insured on it (who would have no to very little experience of cars, let alone fast cars) as a named driver as a cheap alternative to drive the car as opposed to the son being the policy holder (which would be a lot more expensive). In this case, a c class diesel is hardly a Ferrari, though.
Thanks
I am a named driver on my parents car (mercedes c class). I have 5 yrs NCB.
Is it "fronting" if I become the main policy holder on this car and my parents are both named drivers? I will drive the car (to gain more and more experience, freedom, etc), but my mum may drive the car every day of the week to/from work (because I work in Central London). This could change and I become the main driver depending on my professional circumstances (I would only have time to drive the car in weekends as it stands).
This may mean the insurance changes from where it is (Direct Line) to Elephant (who would accept my named driver NCB as standard NCB) and add my parents as named drivers on the policy.
I am under the impression fronting is a father owning a fast car and getting his son insured on it (who would have no to very little experience of cars, let alone fast cars) as a named driver as a cheap alternative to drive the car as opposed to the son being the policy holder (which would be a lot more expensive). In this case, a c class diesel is hardly a Ferrari, though.
Thanks
EV11NED said:
Not "fronting" but you have no insurable interest in your parents car so cannot take a policy out as you do not stand to lose if the vehicle is damaged or stolen.
I would stand to lose though as it still means I cannot use the car on weekends eg shopping etc? I won't drive the car as much as my mum but will still do so on weekends (and even weekdays in the evenings if I go out somewhere). At least, in my family, I tent to share the driving duties.Since it's much more expensive to insure the car the way around you are suggesting (main driver as a young man, second driver as a middle aged woman) the insurance company are not suffering any financial loss as a result of your deception; so it's very unlikely there would ever be an issue. It's still technically fronting though.
EV11NED said:
By "losing" I mean you have to have a financial interest in the vehicle i.e. You have to have bought it or have financed it. This is an insurable interest - as your parents own the car it is they who have an insurable interest, not you.
TBH I did put some money in this purchase (as I had some money not getting used, I contributed).And why does that even have to matter?
However, thanks for the help!
davepoth said:
Since it's much more expensive to insure the car the way around you are suggesting (main driver as a young man, second driver as a middle aged woman) the insurance company are not suffering any financial loss as a result of your deception; so it's very unlikely there would ever be an issue. It's still technically fronting though.
When you say "technically", it seems like this is very subjective and open to interpretation, which is not how it should be when fronting is plain breaking the law.Surely "Fronting" is where the person who claims to be the main driver is not and someone else with a higher risk is?
In this case, the higher risk is the insurer and lower risk drivers are on as secondary drivers. Basically your paying for the highest risk most of the time in this case.
M
In this case, the higher risk is the insurer and lower risk drivers are on as secondary drivers. Basically your paying for the highest risk most of the time in this case.
M
EV11NED said:
Not "fronting" but you have no insurable interest in your parents car so cannot take a policy out as you do not stand to lose if the vehicle is damaged or stolen.
Really???I 'gave' my wife my last car. No money changed hands, she now has it registered in her own name. So you reckon she has no 'insurable interest' in the car and cannot take a policy out on it?
Methinks you're getting your facts mixed up somewhere.....
littleredrooster said:
Really???
I 'gave' my wife my last car. No money changed hands, she now has it registered in her own name. So you reckon she has no 'insurable interest' in the car and cannot take a policy out on it?
Methinks you're getting your facts mixed up somewhere.....
As a married couple, you're interest is shared, surely? I 'gave' my wife my last car. No money changed hands, she now has it registered in her own name. So you reckon she has no 'insurable interest' in the car and cannot take a policy out on it?
Methinks you're getting your facts mixed up somewhere.....
M.
Spanna said:
It reads as though your mother is the main driver and you use it at weekends. As it stands, the policy should be in your mother's name, with her as the main policy holder as she uses the car the most.
I think this is correct.If one driver commutes to work, then they are the main driver, apparently, even if the other driver does more mileage ... so I was told by my insurance company ...
mph999 said:
I think this is correct.
If one driver commutes to work, then they are the main driver, apparently, even if the other driver does more mileage ... so I was told by my insurance company ...
I guess that is why some insurance companies ask what the car is used for (e.g. business/commuting/leisure). So if I took out a policy what would be wrong in me saying I use it for leisure and my parents for commuting?If one driver commutes to work, then they are the main driver, apparently, even if the other driver does more mileage ... so I was told by my insurance company ...
This is a very sort of minute detail which can change in such a routine way (.e.g my dad could do the most mileage or commute to work with the car).
torqueofthedevil said:
They keep laws simple to avoid this debate. Who owns the car (who's name is it registered in). It is their insurable interest. End of story.
Yep I have an old ford focus that we decided to keep as a snotter but wanted to insure in other half's name as he would be driving it mostly. Couldn't get any insurer to cover it as he wasn't the registered keeper even though the address was the same and I was a named driver on the policy.
In the end I had to transfer ownership into his name thus adding another registered keeper which I wanted to avoid when the time comes to sell it.
Vron said:
Yep I have an old ford focus that we decided to keep as a snotter but wanted to insure in other half's name as he would be driving it mostly.
Couldn't get any insurer to cover it as he wasn't the registered keeper even though the address was the same and I was a named driver on the policy.
In the end I had to transfer ownership into his name thus adding another registered keeper which I wanted to avoid when the time comes to sell it.
Ownership and Registered Keeper are two separate things. Changing the ownership does not necessarily need to change the RK, and vice versa.Couldn't get any insurer to cover it as he wasn't the registered keeper even though the address was the same and I was a named driver on the policy.
In the end I had to transfer ownership into his name thus adding another registered keeper which I wanted to avoid when the time comes to sell it.
torqueofthedevil said:
They keep laws simple to avoid this debate. Who owns the car (who's name is it registered in). It is their insurable interest. End of story.
But the good lord makes PH posters even simpler Anyway, it isn't "fronting" but it would be misrepresentation (which is all fronting is anyway).
Mandat said:
Vron said:
Yep I have an old ford focus that we decided to keep as a snotter but wanted to insure in other half's name as he would be driving it mostly.
Couldn't get any insurer to cover it as he wasn't the registered keeper even though the address was the same and I was a named driver on the policy.
In the end I had to transfer ownership into his name thus adding another registered keeper which I wanted to avoid when the time comes to sell it.
Ownership and Registered Keeper are two separate things. Changing the ownership does not necessarily need to change the RK, and vice versa.Couldn't get any insurer to cover it as he wasn't the registered keeper even though the address was the same and I was a named driver on the policy.
In the end I had to transfer ownership into his name thus adding another registered keeper which I wanted to avoid when the time comes to sell it.
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