Car insurance can be a costly business after doing all your lessons to pass your test, but the reason for that is young drivers are statistically a bad risk when starting out driving. However, your parents – as an older, more experienced driver – are statistically a much lower risk, which is why their insurance costs are much lower.
Families with newly qualified drivers have embraced this in attempting to reduce insurance costs for their children by fronting for their children's first policy. This is when a young driver is put onto a parent’s insurance policy as a named driver, when they’re actually very much the main driver of the policy. In most cases, the parent never even gets behind the wheel of their son or daughter’s car.
Doing this might save you some cash, but the downside is you’ll never build up your own no-claims discount, which ultimately allows you to reduce your insurance costs over time. Also, if you have a crash, your parent will lose their no-claims discount, even though they may never have had the accident that you have to claim against. The main reason for not doing it though is because it’s an offence to do so.
Hiding behind your parent’s name on the policy is classed as fraud; you’re making a false declaration to your insurance company, and if you get found out your insurer can charge a penalty or cancel the policy thereafter. After this, getting fresh cover could be very costly if not impossible if you become blacklisted by insurance companies.
Yes, buying insurance as a young driver is painfully expensive, but sadly it’s also necessary – unless you genuinely do share a car with a parent, and they’re the main driver. A much better idea is to take out a telematics-based policy in your own name. Then you should see the costs drop year on year very quickly – as long as you drive safely.