Car insurance fronting: can I be insured under my parent’s name?

Rebeccah Elley

Thursday 27 April 2017

It’s common knowledge that Australian car insurers reserve the best deals for drivers over 25, so if you’re a young driver looking for some car insurance cover it might be tempting to put your policy under your parent's name - but will you be covered?

According to Mozo Director Kirsty Lamont, the short answer is unfortunately no because “if you’re purposely being dishonest with the insurer, you run the risk of your claim being rejected.”

Rather than getting your parents to “front” on your behalf, Lamont says you’re better off putting your car insurance in your own name, as that way you’ll build a reputation with insurers and benefit down the track.

“While you may start off with higher premiums as a younger driver, having the policy in your name should eventually work in your favour, because if you’re a safe driver and don’t have any at fault accidents, you’ll reap the benefits of a no claims discount and also improve your rating.”

Can I be added as an extra driver to my parent’s policy?

While car insurance fronting may void your cover, there is another option of being added as an “occasional driver” to your parent’s policy.

However, Lamont advises that this option should only be taken up if you’re in fact the secondary driver, and are not misleading the insurer. “Again you could find your policy becomes void if you go to make a claim and the car insurer discovers that you’re actually the primary driver of the car.”  

“The important thing to remember is that while you may save a couple of hundred dollars on your insurance policy by being added as an extra driver to your parent’s policy, that saving will pale in comparison to the cost of finding your policy is void after hitting, say a lamborghini.”

Are you on the lookout for some car insurance to cover your new wheels? Don’t just go with the big insurance names, but instead do your research by comparing car insurance policies and discounts online. Just a few minutes could potentially save you hundreds each year.

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