Insurance companies face further wrath from motorists, after it was announced that ALL insurers are set to clamp down on young drivers getting insured under their parents’ policies.
Young motorists are ultimately being forced off the road by attempting to get insured independently.
So, the only alternative and affordable route to take if they want to get insured, is to take out an insurance policy with one of their parents as the named driver on the vehicle.
However, it looks like that option will now be taken away by insurance companies.
Getting a policy in their own name can cost a young person €5,000, but falls to less than €1,000 if they are a named driver on their mother’s or father’s policy.
Broker Jonathan Hehir, of CoverInAClick.ie, said insurers were seeing a rise in cases whereby people were making claims on policies that are in the name of the parents, but where the child was the main driver.
He told The Irish Independent, “It has become a problem for insurance companies, so they are all now going to start clamping down on it,” he said.
Mr Hehir explained that insurers were now sharing more information and were better able to tell when the main driver did not have a policy in their own name.
They were able to cross-check and see when a car is registered in the name of the son or daughter, but the insurance policy is in the name of the parent.
Mr Hehir said insurers tended be sceptical when a parent had two insurance policies, on two cars, in their name.
Insurers and brokers are also suspicious when parents who have not driven for a number of years take out cover again and add a named driver.
“Where the cover is blatantly for the kids, there will be problems. If there is a claim and they discover fronting, then they won’t cover accidental damage on the car and won’t cover theft, but will cover third-party claims,” said Mr Hehir.
Some insurers are making parents sign declarations to confirm that they are not “fronting” for a child.
