Important Lessons About Car Insurance Fronting

You may not think that the world's longest runningillegal. It is considered fraud in the eyes of the car
soap opera Coronation Street would have aninsurance company and should an accident occur the
important tale to tell about car insurance - but that isdriver would be potentially left with costs reaching tens
exactly what occurred in a recent episode.of thousands of pounds to cover for her own car and
As part of the storyline, the 18-year-old charactera third party with no help from the insurer.
Amber was seeking her first vehicle. Knowing that carSo if asking an adult to front a policy for you is both
insurance costs would be high, her father's girlfriendillegal and effectively a 'false economy', what can
Tara offered her the chance to drive her red VWyoung drivers do to keep their car insurance costs
Beetle while keeping the insurance policy in thedown?
25-year-old's name.A legal approach would be to put the policy in the
Certainly there could have been significant savings byyoungster's name but add an older, more experienced
taking this approach. Tara would currently paymotorist as a 'named driver' on the policy. This could
between £2,000 and £4,000 a yearpotentially cut premiums by around five per cent.
depending on her claims history - however, if the policyIn addition, there are savings to be made by taking the
was put in Amber's name that cost would leap toPass Plus course as soon as you pass a driving test -
more than £5,000. So, on the surface it seemssome insurers offer discounts of over 10 per cent for
leaving the car in Tara's name is a sound financialcompleting the course. Indeed there are several
approach.insurers that also offer rapid bonus no-claims discount
However, while it might seem like a good way to saveschemes meaning that you could build up a full year's
money, fronting a policy on a youngster's behalf isbonus in just nine or 10 months.