Due to ever increasing cost of car insurance this is becoming more common and is called policy Fronting – don’t think the insurers are not aware of this!! Older people have fewer accidents than younger people so are less of a risk to insure, therefore their insurance costs less. If you are a young driver but take out a policy in an older person’s name such as a parent, then the policy will be calculated with the older person as the main driver. In doing this you are in effect committing Insurance Fraud..if your Insurers find out they will void the policy or refuse to pay out for an accident. As you will have been refused Insurance you will have to declare this to other insurance companies and they will not insure you either.

Remember, your Insurance company will not look into it too much when you take out the policy but they will investigate if you have an accident. Any claim with a young named driver will be placed on hold and the policy checked for potential fronting of the policy. They will do this by:

• Requesting the V5 documents to see who is the registered owner
• Checking who’s account the policy payment comes from
•  Requesting a copy of the  sale receipt for the car
• Check what other vehicles are kept in the family (if you’re dad is a company director and drives a new BMW but is also  down on your policy as the main driver of your 10yr old Vauxhall Corsa then alarm bells will ring!!!)
• Conducting phone interviews with both the policyholder and the named driver
• And more!! You have been warned!!