Young Drivers Insurance – Is it legal for parents to be added as named drivers on children’s policies?
As parents, we want to do what we can for our kids, even when they’re grown up. But are you prepared to break the law?
Nearly half of 20-24 years olds are still living with their parents according to the Office for National Statistics, and the Bank of Mum and Dad now reportedly helps to fund 1 in 12 house purchases. When it comes to insuring their children’s wheels, parents are also stepping in to help out financially, but in some cases, this could be unlawful.
Because of the increased risks posed by younger drivers or those who have just passed their driving test, insurance premiums can be prohibitively high for this age group. More experienced drivers generate less risk and therefore have lower premiums for the same vehicle. It could be tempting for a parent to claim to be the main driver of a vehicle just to reduce the insurance premium. But this is illegal. It is called fronting and will invalidate the insurance, meaning you could be left seriously out of pocket.
What is fronting?
If you claim to be the main driver of a vehicle, but a named driver covers more miles in the vehicle than you, you are ‘fronting’.
How can I be found out?
In most cases, fronting is discovered when a claim is made. If it is the named driver rather than the main driver who has had the accident, an investigation may be carried out.
What happens if I am caught?
Many people don’t realise that what they are doing is called fronting and that it is illegal – they just think they have found a smart way to save some money. Whether you do it wittingly or without realising it is wrong, it can still have serious consequences:
- If your insurer decides that it is a case of fronting, your claim will be voided – and you’ll receive no financial payout to help you repair or replace the vehicle
- You, the policyholder, could be charged with fraud. This could leave you with a criminal record.
- The young driver involved could also be found to be illegally driving without insurance, which could result in fines of £300 and up to six penalty points being added to their licence
- That means your child could lose their licence. Six or more penalty points accumulated on a licence within two years of passing a driving test automatically results in the licence being revoked
- When insurance quotes are requested in the future you and the young driver involved will have to declare that insurance has been refused or cancelled
All of these factors are likely to increase the cost of future insurance premiums.
I share the use of a car with my child – who should be named as the main driver?
The main driver should be the person who regularly uses the vehicle to drive to work or college, uses it every day or is responsible for its maintenance. If still in doubt, speak to your broker for advice.
Can I be added as a named driver on my child’s policy?
Yes. Adding an experienced driver as a named driver on a policy could help to reduce premiums as it is sometimes considered to reduce risk if a more experienced driver is behind the wheel some of the time.
Alternative, legal, ways to reduce car insurance premiums for younger drivers
- Telematics. Also known as ‘pay as you drive’ this is a bit of kit installed in your car that records the way you drive, when and where. Safe driving is rewarded with lower premiums
- Choose a car that is cheaper to insure. Small cars with small engines are cheaper to insure than big cars. If reducing your premium is important, look for low cost makes and models like a Peugeot 107 or Toyota Aygo
- Pay annually. Paying your insurance every month adds interest to your premium that can quickly mount up. Pay the full amount in one go if you can to get the best price
- Shop around for the best value deal or use an experienced broker to do the hard work for you. Every insurer calculates risk differently, so it really does pay to compare policies from as many insurers as possible. If you don’t have the time to make those calls, use an independent broker to do the legwork for you as the savings can be substantial
Call Park Insurance’s helpful team on 0117 955 6835 or get a quote online now to see how much you can save on car insurance without breaking the law.