Insurance Loophole?

sdanseo

Ok, so I've just applied for my provisional and am looking to get a car. Originally I had planned to be name on my Mam's car and share that, but with my school and her Work times, that dosen't work out very well. In order to get to Grinds/Study etc it'd make life much easier.

I've heard of a loophole whereby someone (a parent, for example) takes out a second insurance policy, naming a second person (eg me) on the policy. Therefore i get insure on basically my own car for about €1000.

Firstly, is this possible? Ive heard of a few instances of something like it so im presuming soi, but is it legal?

Advice really appreciated, thanks.

S

bazz26

sdonn_1 wrote:

Ok, so I've just applied for my provisional and am looking to get a car. Originally I had planned to be name on my Mam's car and share that, but with my school and her Work times, that dosen't work out very well. In order to get to Grinds/Study etc it'd make life much easier.

I've heard of a loophole whereby someone (a parent, for example) takes out a second insurance policy, naming a second person (eg me) on the policy. Therefore i get insure on basically my own car for about €1000.

Firstly, is this possible? Ive heard of a few instances of something like it so im presuming soi, but is it legal?

Advice really appreciated, thanks.

S

As far as I know yes legally you can do this but your mam's No Claims Bonus can only be used on one car not two. This bumps up the price on the second policy, also if you cause an accident while driving the car then it is your mom's No Claims Bonus that is effected which means her premium will go up on her own car also. Insurance companies are coping on to this these days.

Dilbert75

Theoretically, yes. Practically, maybe not. Firstly, the person getting the insurance for you will probably not benefit from their NCB on the second policy. So the €1000 could become €2000. Then you have the possibility that (as has happened in the past) they are not allowed to add a named driver for the first year of ownership of the car (specifically to thwart that type of "scam"), so you would have to drive the "current" car while they would have to drive the "new" car. Then there's the declaration that the named driver would not be the main driver of the car.

How much of this you come up against possibly depends on your broker. Worth a shot?

As an aside, do many schools still allow their pupils to park on school grounds? I thought that was being eliminated due to space / H&S requirements.

mloc123

€1000 would be very optimistic.

It is possible but its not all that cheap anymore, your parent cannot us there NCB on the second car which will make it more expensive for them to insure in the first place. Then to add you as a nmed driver, 17/18? on a provisional you can expect to pay anything from €1500 to god knows what.

All in all I'd say it'll be €2/3k at least. You are probably better off getting your own policy with Quinn, **** as they are.

cormie

The best thing you can do is just get your own policy. Insurance is considerably cheaper these days then it has been for the past few years, wheteher it will stay this way, get better or get worse, I don't know, but if I were you, I'd get your own little banger, get insurance on your own policy and within a year you could be paying much less than you would expect if you do it right (get your own car, own policy, pass provisional ignition test, go with a hibernian company {tesco, brittoninsurance.com}, pass your full test, then pass the full ignition test) and there you have it, you'll be on the cheapest insurance possible while building up your very own NCB).

This is the best route to go down starting off and hey, you may as well get the big bang of insurance now when you can scrounge off your parents:D

ninty9er

Dilbert75 wrote:

As an aside, do many schools still allow their pupils to park on school grounds? I thought that was being eliminated due to space / H&S requirements.

4-5 guys in my year parked in the yard. there was a 5th yr or 2 either*(sorry: also)

Henry Ford III

If somebody, an uncle or aunt, or anybody, says on a proposal form that they are going to be the main driver of a car, and they know that is not in reality factual, the policy will be voidable due to blatant non disclosure.

sdanseo

Dilbert75 wrote:

As an aside, do many schools still allow their pupils to park on school grounds? I thought that was being eliminated due to space / H&S requirements.

Yeah there is a sopt where kids with cars are able to park. (maybe not oficially but in practice we're allowed) - It's small though, but if space runs out normally theres spots out in the estate in front of the school.

mloc123 wrote:

Then to add you as a nmed driver, 17/18? on a provisional you can expect to pay anything from €1500 to god knows what.

Yeah, 18. Booked the test 2 days ago online, hope to take it early in 2010;)

cormie wrote:

The best thing you can do is just get your own policy. Insurance is considerably cheaper these days then it has been for the past few years, wheteher it will stay this way, get better or get worse, I don't know, but if I were you, I'd get your own little banger, get insurance on your own policy and within a year you could be paying much less than you would expect if you do it right (get your own car, own policy, pass provisional ignition test, go with a hibernian company {tesco, brittoninsurance.com}, pass your full test, then pass the full ignition test) and there you have it, you'll be on the cheapest insurance possible while building up your very own NCB).

This is the best route to go down starting off and hey, you may as well get the big bang of insurance now when you can scrounge off your parents

Looks like I'll be taking this sort of route, from what I've seen/read.

Thanks for replies so far lads:)

JohnCleary

It's perfectly legal, but you won't be building an NCB so is a waste of time tbh

bazz26

Henry Ford III wrote:

If somebody, an uncle or aunt, or anybody, says on a proposal form that they are going to be the main driver of a car, and they know that is not in reality factual, the policy will be voidable due to blatant non disclosure.

Not very clear cut though legally.

I would imagine the insurance company would have to prove in a court of law that the named driver was the main user. In this case mam could always say that the named driver borrowed the car, once they are insured to drive it I don't see an issue. The burden of proof would be with the insurance company to prove otherwise.

TheMonster

bazz26 wrote:

Not very clear cut though legally.

I would imagine the insurance company would have to prove in a court of law that the named driver was the main user. In this case mam could always say that the named driver borrowed the car, once they are insured to drive it I don't see an issue. The burden of proof would be with the insurance company to prove otherwise.

so adding perjury to fraud - nice sentence you are building up:rolleyes:

layke

TBh, just get a job save up the 4000 it's going to cost you and do your first year. If you get your full license you'll prolly get your insurance for just under 2k in year two.

sdanseo

layke wrote:

TBh, just get a job save up the 4000 it's going to cost you and do your first year. If you get your full license you'll prolly get your insurance for just under 2k in year two.

I had a job, but quit it there this week because i've just started 6th year. I was looking for something in a tight budget, but the scrounging off parents option sounds good, I'm gonna have to try that

bazz26

TheMonster wrote:

so adding perjury to fraud - nice sentence you are building up:rolleyes:

You'd be surprised how many young drivers out there are going down this road (excuse the pun). Not that this makes it right however.

Wazdakka

bazz26 wrote:

You'd be surprised how many young drivers out there are going down this road (excuse the pun).

Been there, done that, bought the insurance

Its the only way i could afford to start out on the road.
The insurance companies do charge daft prices for first time drivers, Doing it with the second policy route saved me nearly half the cost.
You dont build up your own NCB but alot of insurance companies are starting recognise no claims years as a named driver.

If you crash tho and have to claim it is your parents (or whoevers insurance policy youre using) no claims out the window. Im not too shure but as i remember NCB protection doesnt cover this "Scam"

My advice: Go for it, But buy yourself a cheap small car, (micra, secento) and DONT CRASH ie, drive safe..
If the worst happens try settle in cash, or else your folks might not talk to you ever again