Insurance - money situation -

Belloni

Belloni

Belloni

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17 Feb 2009
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Hi fellers, i recently passed my driving test, im 20.

Now, basically me and my brother are under my mums name on a little car my brother bought for cheap, now all is well, but it's becoming a pain because having the car isn't always reliable, IE my brother may take it out to pick his girlfriend up and i need it also for example, can get really annoying so i've decided i need my own car.

Now, because i've only been driving for a few months, insurance is costing me around £1,700. I have a full time job, so i can manage the monthly payments, i'm just thinking it's kind of inevitable right that i'm going to have to go under my own name eventually, so should i just do it now to get it over and done with or wait, because i would like to go to vegas in january with a work collegue.

I've found a ford KA for £500 from a friend at work, so would you just do it now to save yourself money in the long run?
 
Insurance fraud is cool because it allows you to go to Vegas! :)

In a more serious tone, misleading insurance companies over who is the main driver is called fronting and is illegal.
 
Belloni said:
Hi fellers, i recently passed my driving test, im 20.

Now, basically me and my brother are under my mums name on a little car my brother bought for cheap, now all is well, but it's becoming a pain because having the car isn't always reliable, IE my brother may take it out to pick his girlfriend up and i need it also for example, can get really annoying so i've decided i need my own car.

Now, because i've only been driving for a few months, insurance is costing me around £1,700. I have a full time job, so i can manage the monthly payments, i'm just thinking it's kind of inevitable right that i'm going to have to go under my own name eventually, so should i just do it now to get it over and done with or wait, because i would like to go to vegas in january with a work collegue.

I've found a ford KA for £500 from a friend at work, so would you just do it now to save yourself money in the long run?
Click to expand...

Get it done bite the bullet.
 
Trifid said:
Insurance fraud is cool because it allows you to go to Vegas! :)

In a more serious tone, misleading insurance companies over who is the main driver is called fronting and is illegal.
Click to expand...

Eh?! How am i doing insurance fraud?!

I'm saying i'll leave my from my mums and start under my own name?
 
So your insurance would cost £1,700 in your own name or that's what your paying now? I paid that much, however I have a part time job so can't see why you shouldn't pay with a full time job.
 
The way you and your brother are insured now is called 'fronting'. Your mum is fronting a policy on a car she (I assume) virtually never drives and is used much more by your brother and yourself. I'd assume more so your brother if you're looking to get your own car rather than him.

If you were to do the same thing on your new car so you could afford to go to Vegas, again, it would be a fronted policy.

Were you to have an accident and the insurance company had a look at what was going on, thought 'hang on, Mrs Belloni is insured on a nice <insert mum type car> and also a £500 Ka with her son as a named driver' and put 2 and 2 together, you would be right up **** creek. They'd pay out to third parties but anything you were trying to claim (assuming comprehensive) would be a waste of time and I think they may attempt to claim the money for the third party payout directly from you. Not 100% sure on that last bit though i'm sure someone else will be.
 
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Yateszy said:
So your insurance would cost £1,700 in your own name or that's what your paying now? I paid that much, however I have a part time job so can't see why you shouldn't pay with a full time job.
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It's what it would cost me, i'm going to look at the car tonight then decide from there.

Oh, i didn't know what she was doing was "fronting".
 
They really should mention what fronting is before you get your licence, as nobody seems to realise it's wrong. I bet loads of drivers are paying less than they should.
 
http://www.guardian.co.uk/money/2009/jul/12/car-insurance-fraud

A couple of select quotes:

"While fronting is classed as insurance fraud, many parents carry it out without ever realising it is a criminal offence."

"In reality, if fronting is detected, insurers can refuse to pay out for any claims or can settle a third-party claim and recover the cost from the parent as the policyholder. If the insurer declines a claim, the young driver could be treated as uninsured and could be fined hundreds of pounds and receive six penalty points (an automatic ban for new drivers). They will also face higher insurance costs in the future."
 
Belloni said:
It's what it would cost me, i'm going to look at the car tonight then decide from there.

Oh, i didn't know what she was doing was "fronting".
Click to expand...

It is only classed as fronting if your mum is put down as the main driver. If she is purely the policy holder and not the main driver it is fine.
 
Xez said:
It is only classed as fronting if your mum is put down as the main driver. If she is purely the policy holder and not the main driver it is fine.
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99.9% of times there is no differentiation between policyholder and main driver. The policyholder IS the main driver.
 
[TW]Fox;17469710 said:
99.9% of times there is no differentiation between policyholder and main driver. The policyholder IS the main driver.
Click to expand...

I won't contradict you but when I had my first car my mum was purely the policy holder with myself down as the main driver. Double checked as I knew it'd be illegal otherwise.

But looking back I wish I had my own policy as when it came to insuring a better car they wouldn't allow it and I couldn't carry my no claims over.
 
My Dad offered to "front" me, I knew it was illegal and most of my mates did it for years on their parents policy but I just think its better to start how you mean to go on, you'll have that big first years to pay eventually so why put it off? insurance is only going up anyway!
 
Or not, mum is letting me lol coz she got penalized for having us on her insurance so she had to pay out for that too, this sucks balls, i could make such a profit on this KA.
 
Belloni said:
Or not, mum is letting me lol coz she got penalized for having us on her insurance so she had to pay out for that too, this sucks balls, i could make such a profit on this KA.
Click to expand...

So your mum got found guilty of insurance fronting then ?

Weird thread is Weird !
 
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