What problems exist with different policies on 2 cars?

muffler

A quick question for the hardened (insured) motorists on this forum.

So my daughter is currently taking driving lessons and is hoping to buy her own car but the insurance cost is crippling...€5,000 give or take. It came up in conversation that maybe I would consider buying and insuring the car in my name which on face value would possibly reduce the cost of the insurance.

I have my own car and a full NCB but if I bought a second car, insured it and added the daughter as a named driver and if she crashed it or had a claim made it all falls back on me I would think. But my question is...in the unlikely event of a claim being made against that policy would it have any effect on my own policy? I know that any bonuses attached to the second policy would be gone but would it affect my own policy for my own car?

I suppose a simpler way of putting that is to ask if a claim is made in these circumstances does it affect one policy or two with regards to loss of NCB?

Skatedude

K, you can only have one no claims bonus, so you can't use it on another car so you will be charged as if you have zero no claims bonus on the second car.

Secondly, you cannot buy and insure a car in your name for your daughter, that is called fronting and illegal. If she is the main driver, then the car and insurance must be in your daughters name.

If you had a claim on the second car when it's in your name, you would still need to declare it on renewal on BOTH policies, so it could indeed affect your insurance.

The only real way is to buy a car and insure it in your daughters name so she can start earning her own no claims bonus which will bring the cost down after a year or two, And to add yourself as a named driver on her car can also reduce the costs a bit.

You might just need to do what a lot of us have done and simply have your daughter only drive the instructors car until she passes her test first, then think about getting her a car once she has her full licence.

eeguy

Start adding yourself and anyone else with plenty of experience as named drivers to bring the cost down.

Also play with the occupation selector as that can also have an impact on the final price.

muffler

Skatedude wrote: »

You might just need to do what a lot of us have done and simply have your daughter only drive the instructors car until she passes her test first, then think about getting her a car once she has her full licence.

Some interesting points and much appreciated.

Re: the quote above. Yeah, she has only another 2 lessons to do (think its 12 total) before she can apply for the test. I think it makes perfect sense to look about the insurance after (and if) she passes her test. That should make a difference to the premium.

muffler

eeguy wrote: »

Start adding yourself and anyone else with plenty of experience as named drivers to bring the cost down.

Also play with the occupation selector as that can also have an impact on the final price.

Any ideas as to what or who are classed as the lowest risk?

coylemj

eeguy wrote: »

Also play with the occupation selector as that can also have an impact on the final price.

muffler wrote: »

Any ideas as to what or who are classed as the lowest risk?

Probably a librarian but 'playing' with any information you supply when taking out insurance is playing with fire. You are required to be 100% honest (full disclosure of all material facts - if in doubt, declare it) when answering their questions so tweaking your occupation to reduce the premium could land you with a voided policy and a big claim sitting in your lap.