Your car insurance is as costly as it is, because as a young driver you’re statistically a bad risk. However, your parent – as an older, more experienced driver – is statistically a much lower risk, which is why their insurance costs are much lower.
Many families have latched onto this and are attempting to reduce insurance costs for their children by indulging in a bit of fronting. This is when a young driver is put onto a parent’s insurance policy as a named driver, when in fact they’re very much the main driver. Indeed, in most cases, the parent never even gets behind the wheel of the son or daughter’s car.
Such a move might save you some cash, but it’s bad news as you’ll never build up your own no-claims discount, which ultimately allows you to slash your insurance bills. Also, if you have a crash, your parent will lose their no-claims discount, even though they may never have had an accident. The most obvious reason for not doing it though is because it’s an offence.
Hiding behind your parent’s name on the policy is fraud; you’re making a false declaration to your insurance company, and if you get found out your insurer can charge a penalty or cancel the policy. After this, getting fresh cover could be very costly if not impossible.
Yes, buying insurance as a young driver is painfully expensive, but sadly it’s also necessary – unless you genuinely do share a car with a parent, and they’re the main driver. A much better bet is to take out a telematics-based policy in your own name, as shown by our case study. That way, you should see the costs drop very quickly – as long as you drive safely.