That's hardly fraud. Fraud is illegal and this is not illegal and if premiums were lower for young people they wouldn't have to do this.
It is fraud, it's not widely prosecuted but is nonetheless fraud. Also if you are caught doing this your policy will be declared null and void, therefore no payout on your own damages, unfortunately the law states third party costs still have to be paid, but you can be pursued legally for the company to get these back, and many are. You are also looking at it the wrong way, premiums would be lower for young people if they were safe drivers, they as a whole aren't, as soon as they prove themselves with a years NCD and no convictions they are generally given lower premiums. All the insurance company does is assess risk.
Ok, yes, giving false information by saying that the parents will be the main driver is illegal and stupid because they won't get payment if they have to claim but I worked for Quinn Insurance for 3 years and in my experience that isn't what happened. Parents simply took out a policy with their kids as named drivers which is perfectly ok. Besides it wasn't possible to do this as 99% of the time parents had a policy on another vehicle on which they used their NCB and they are not allowed to use NCB on more than one policy. If they did want to use their NCB they had to provide proof that it wasn't used on another policy and that they were the registered owner of the vehicle. Also, I don't know how other companies worked but in Quinn's the premium was based on the details of the highest risk driver so 'fronting' never worked.
It is still common place, I've worked in insurance underwriting for many years, dealing with non-disclosures and the rating of policies. Most companies now employ "fronting flags" whereby an additional load is applied to policies where certain answers point to fronting, i.e more than one car at the address, the car now being insured is a small hatchback and the young driver is not noted as the main driver. You rightly assert setting up a policy in the parents name is not wrong at all, with no NCD and the correct use of the vehicles being denoted. However many parents now take advantage of mirroring bonus, they have two cars in one parents name, with insured and spouse driving and full NCD on one car. To reward loyalty many insurers will either mirror the bonus under this risk for both cars or offer a substantial discount as an intro on the second car. Then the other parent takes out a policy for them and the 17 yr old with full NCD earned under their name and completely misrepresented. Claims investigators are not stupid though, they know what to look for and catch a lot of these cases out now.
We can also start a community based project so that 18-25 year old lassies can phone up those of us with a helpful disposition to give them a lift to and from their nights out. Just to keep them safe. Yes. To keep them safe.
I hate the mirroring NCB and parents paying for sprogs insurance thing. When I started to drive, my folks put me on their insurance on the family car (which I had to pay for), I earned a years named driving experience and then I bought my own car and paid for insurance, tax etc myself with no help from my parents through fronting or otherwise. It always annoyed me when I got a call for a quote from someone saying "I just bought my son/daughter a car and I am looking to insure it, can I use my NCB to make it cheaper?". I wanted to scream at them to teach their kids the value of things instead of spoiling them. Instead I had to politely explain that they would be unable to use their NCB if it were used on another policy.
What about when a parent buys their son/daughter a car, therefore the policy holder has to be the owner of the car?
I had you on ignore and was confused... Then I remembered why, you're a pathetic little racist weasel
