Car Insurance tips

Don’t ‘front’ for your child:
why honesty really is the best policy

As the cost of an annual car insurance premium rises, more and more families turn to what has become known as ‘fronting’ to get their teenagers or young adults on the road. To get affordable car insurance for their children, some parents say that they’re the main driver of their child’s car, and insure the car in their own name with their son or daughter as a named driver on the policy.

Many parents who 'front' for their child may actually be unaware that what they are doing is illegal. The truth is, in the event of the younger driver having an accident, the policy could be invalidated if they were judged to be the main user of the car. Family members could also run the risk of prosecution for not having the correct insurance, and be fined or receive endorsement points on their driving licences.

It may be tempting to try and save money by adding offspring to a parent’s policy – whether truthfully or otherwise – but this is not necessarily the best way to cut costs anyway, as the young driver needs to build up their own no-claims bonus. While their initial insurance premium will be high, a few years later down the line, they will benefit from reduced policy costs if they have a good driving record. It's also important to bear in mind that any accident the child has will drive up the parent's premium and could affect years of building up their own no claims.

Other white lies that could really cost you

Other factors that you should be upfront about include:

• Your driving history – Not disclosing fines, past claims or convictions may not be picked up initially, but it's very likely that you'll be found out when you make a claim. By law, you should provide this updated information when applying for a new policy, or renewing an existing one.
• Your address (including where you park) – Perhaps your parents live in a in a safe and quiet area with private off-street parking, whereas you live in the city centre with access to parking on the street. You may think that giving your parents' address will make you appear lower risk, but if found out (e.g. if your car is damaged while parked) you could be left considerably out of pocket.
• Your car usage – Be truthful when it comes to whether your car is mainly used for business or personal use. Whilst many of us will use our cars to get to and from work (still classed as personal use under 'commuting'), if you regularly drive long distances between various work sites your car will need appropriate business cover. Your annual mileage will generally be higher for a business vehicle, and this will be taken into consideration by your insurer. For instance, if you've stated that your car is for personal use only, but your mileage is sky high, this could raise questions when making a claim.

There are easier and less risky ways to try and make savings. A car insurance quote can be reduced by choosing a car in a low insurance group, typically one with good security measures, good crash safety protection, low repair costs after an accident – and usually one which is not fast and high-powered. Cars with modifications – even added aftermarket alloy wheels – will cost more to insure too, so stick to something standard-issue.

Of course, drivers of all ages must by law be appropriately insured with a policy that suits their needs. They should shop around to get the best deal, but make sure they compare like with like – the best policy may not necessarily be the cheapest, but the one offering the most comprehensive cover. This is especially important for young drivers, who are statistically more likely to be involved in an accident.

Issued by Sainsbury’s Finance
Sainsbury’s Finance is a trading name of Sainsbury’s Bank plc. All information correct at time of publication, but may be subject to change. Any views or opinions expressed in this article are the responsibility of the author and do not necessarily reflect the views of any part of the Sainsbury’s Group of companies.
Sainsbury’s Finance is a financial services provider engaged in savings accounts, credit cards, and personal loans. It also supplies insurance services in car insurance, home insurance, life insurance, pet insurance and travel insurance as well as being a provider of travel money services.