Young Marmalade, the UK’s only combination package dealer for nearly new and used cars that include insurance for young people, warn of the insurance traps that many have commonly fallen for.
It is perfectly fine to insure a parental-owned car for your child, it is essential to understand that this would only be for occasional use of that car. However consistent use of the car could result in you being accused of insurance fronting. Secondly, insurance on a car that you do not own is not feasible either, which means that the insurance company would be within their rights to refuse payment on any claims.
Insurance fronting is also a term for when parents use their no-claims bonus to insure a car for their son or daughter to regularly drive in order to reduce the cost of insurance. One of the things that many “forget” to do is inform the insurance company of the main driver. The owner of the car may not be the main driver, but that does not mean it is acceptable not to inform the insurance company. The forfeit in the case of an accident may well mean that the insurer will cancel the policy, refuse to pay out or even demand a substantial contribution from you instead.
When the cost of insurance for those under the age of 25 is typically so high, people will look for “other” ways to bring down the expense. Insurance fronting unfortunately is one of them. Young Marmalade however have tapped into the knowledge that insurance for young drivers is typically high. They have also acknowledged the fact that young drivers are safer behind the wheel of a new or nearly new car. Which is exactly why the company have designed a one-of-a-kind offer that includes the safety of a new or nearly new car, with low annual insurance.
Discover safety on the road at an affordable price and feel peace of mind in knowing your child is both safe and legally insured. Further details about this all-inclusive driving package can be discovered at www.youngmarmalade.co.uk
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