UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents
Posted by Tim Larden
Over the last 10 years, the cost of motor insurance for young drivers has shot up. A cheaper alternative than your own motor insurance policy is to buy cover in your parents name with yourself named. Is this cost effective and more importantly does it invalidate your policy?
For may young drivers, affording the costs of motor insurance is an issue. With first time insurance costs running to several thousands of pounds in some instances, it is no wonder that younger motorits are looking for ways to keep premiums down. There are many legitimate ways of doing this. Young drivers shoudl look at the type of cover they need, consider the pass plus course and their first car should have as small an engine as possible to keep the cost low. However many young drivers look to insure in their parents name in an effort to make their first policy affordable. If the main driver is a young driver, most companies will insist that they be the principle policyholder and will not allow them to be named on anothers policy. Deliberately insuring a car and misleading your insurer about your circumstances has serious consequences. In this particular scenario it is referred to as fronting. If a claim should arise from a policy and the insurer discovers that you were fronting, then it can have serious repurcussions. Firstly they could refuser to pay a claim and they could go as far as to void your policy which could mean that the police deem you to have not been properly insured and the courts could then issue an IN10 conviction. If a young driver is merely a part time user of a car then it may be legitimate to insure in this way. However the reality is that it might not save you the money you think it will. The building of a No Claims Discount is one of the best ways of helping to reduce your Motor Insurance premium. This works through loyalty and history built up between yourself and your Motor Insurance Company. If you have not claimed the company will calculate your premium and apply a discount to it, rewarding you for your safe driving. This figure, depending on the Motor Insurance company can range from anywhere between 30% and 60%. These days many companies allow you to protect your No Claims Bonus by paying a small amount up front on your premium. This could be highly worthwhile when you consider how much your policy may end up going up in price next year given an accident this year. It is very important that young drivers build their No Claims Bonus. If you insure the car in a parents name, whilst there may be a cost advantage in Year 1, it may transpire that in years to come this becomes a false economy. The No Claims Bonus is a bonus weighed against the main driver. If a parent insures a car with a young driver on the policy then at renewal, the 30-40% disount you were expecting might be far less. It is highly recommended that the main user of any vehicle be the main insured name. It can work out financially better and you can avoid the risk of invalid insurance. The best course of action is to speak to specialists who deal with Young Driver Motor Insurance. Of course, the best money saving tip of all is to shop around! No one insurance company can give competitive premiums for every driver so check as many quotes as you can. Motor Insurance - yourmotorinsurance.co.uk is designed to give information to a range of UK drivers about their motor insurance needs. It supplies quotes using a system that checks a number of different insurers. It also has zones dedicated to 17 year olds motor insurance and womens motor insurance Tim Larden has worked in UK insurance for many years and works with this web site keeping up to date with the latest industry changes.
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