Is it legal to insure a car as the main driver in order to save money having a granddaughter as the main one?

Question

Is it legal to insure a car as the main driver in order to save money having a granddaughter as the main one?

Answer 1

The policy holder should be the same person as is named on the car's registration document, unless there is a specific reason why not, and the insurance company has been informed and has approved.

The main driver on the policy should be the person who drives the car the most. If not, and you try to make a claim, the insurance company can refuse to pay out, and you could be taken to court for fraud and driving without valid insurance.

Answer 2

If you are in the UK, most insurers will only insure a car in the name of the registered keeper, as they would have to pay out the registered keeper in the event of a loss.

However, what you are planning to do is something that people have been doing for years, and insurers have now got wise to it. They often rate their premiums on the age of the youngest driver these days, and not on the age of the person listed as the main driver.

What I would do is to apply for two quotes. One in your name, with your granddaughter as a named driver, and one in her name. You may find that there is not much difference. You would then need to bear in mind that if it was to go in your name, you would have to re-register the car to yourself, which would reduce it's value as there would be another owner on the log book, and you would need to bear in mind that if your granddaughter is not insuring the vehicle in her own name, she may not be building up her own no claims bonus, as most insurers do not give no claims bonus to named drivers, so when she eventually does come to insure it in her own name, it will still be expensive as she will be starting from scratch. It is just a case of weighing up the savings against the consequences and deciding if it is really worth it, but from experience, the only way a young driver can get their premiums down is by getting some claim free insurance experience in their own name behind them.

There are also implications to think about. If you do make a claim and your granddaughters belongings are in the vehicle, or it is stolen from her address or workplace, the insurer may query why you are insuring it when it is clear she is the main user. Thewy could technically throw out the claim on the grounds that you have failed to disclose material facts to gain a lower premium.

Answer 3

As long as she is a named driver and any convictions for driving offences are made known your fine.

Answer 4

how old is  your granddaughter? she can get a none owners insurance so she can drive any car and be cover, that way you are not responsible for it and risk having your insurance premium go higher, I know you are trying to save money but you got to be smart and cover your assets

Answer 5

She would need to live with you and present proof (drivers license) to the insurance company. If she starts getting violations, it will increase your insurance rates even after she is off the policy or could get coverage cancelled. Then you are stuck with "high risk" insurance for 3 yeaqrs.

Answer 6

Aside from all the threats and legal stuff--remember insurance is a game of trust/ like your bank- you give them money and they will give it back if you ask nicely. As litigation for 'wrongful death" and Crash repair approaching  combined cost of $20,000 just for a regular crash(?) not to mention medical--you are willing to risk an insurance company giving you the heave ho over "well you lied to us!!!" And don't think that for a $100,000 they won't send an investigator to her school and find out how she gets there.

Answer 7

No..it's illegal, however there is no real evidence that you're not the main driver and it's difficult to prove it.

Answer 8

In the UK it is called ' Fronting ' and its illegal.

Answer 9

No it's not.  You're making a false declaration to obtain insurance, which is classed as fraud. Don't risk it.

Answer 10

Well no. It is illegal. You are falsely claiming to be the main driver of a vehicle when someone else is going to be a main driver.

That is fraud and you could be penalised for it.