QI want to add my 21 year old daughter to my car insurance. She starts college in September and I want her to be able to drive there if she ever needs it as I don’t use the car every day myself. Someone recently approached me about “fronting” and now I’m not sure if it’s ok if she uses it regularly or not. How does it work?
A Fronting occurs when a vehicle is insured on behalf of a parent or other person, but the insured vehicle is primarily used by a significantly younger person on the policy. According to Jonathan Hehir, Managing Director of Coverinaclick.ie, insurers need to verify who the main driver of an insured vehicle actually is, particularly where there is a named driver under the age of 25 on the policy. This allows them to accurately assess and identify the right level of risk. If a young named driver primarily uses the car, the risk factor increases proportionately, he said. This means you have to consider how much use of the car they will have and what they will use it for. For example, if your daughter used your car for school every day and you only drove it on weekends, then your daughter would be considered the primary user of the car. In the event of an accident or a claim on your policy, and if evidence of fronting was identified, your policy would likely be canceled and any claim denied, Mr Hehir said. He advised you to contact your insurer if you have any questions about your coverage.
Q For the first time in 10 years we are going on holiday overseas in September. In the past I’ve only taken out travel insurance for the few days leading up to a holiday, but since Covid I want to be sure I’m covered just in case. We also have two young children, so that’s another aspect to think about. Is there anything I should look out for in a policy?
A According to People Insurance Managing Director Paul Walsh, not all travel insurance products are created equal. “Cheapest” doesn’t mean best value, he said. “Cheap” multi-trip insurance may only cost €25, but it may not cover a holidaymaker’s most basic needs. For just €15 more, travelers can get a policy that gives them much more comprehensive protection, Mr Walsh said. Be careful with travel cancellation insurance. It doesn’t necessarily mean you’re covered for all events that could cause your trip to be canceled, he said. This means it is important to assess what exactly this means for your policy. Check the policy deductible. This is the amount that will be deducted from each claim before a claim is paid. Make sure you can afford the limit you set as you will need to cover it in the event of a claim. Find out to what extent doctor and hospital costs are covered. Check that all items you will have in your possession are covered, especially expensive items. Because most travel claims are made before the person even boards a plane, it’s best to purchase coverage as soon as you book travel, Mr Walsh said.
Q My husband contracted meningitis last year which left him unemployed for four months. He’s since gotten a new job, and we’ve talked about getting income protection insurance if we ever go through something like this again. I earn around €3,000 a month. Can I pay the full amount or just a percentage? And if I have to make a claim, would I have to continue paying my premium while I receive a benefit?
A When life is going well, it’s easy to take your income for granted. It pays the bills and lets you take care of your family, enjoy your home, hobbies and vacations. Unfortunately, as you’ve witnessed firsthand, an illness that prevents you from working can happen at any time, and it’s wise to have a financial safety net, according to Siocha Costello of Aviva Life and Pensions. With income protection, you can protect up to 75 percent of your income up to a maximum of €262,500 a year, she said. If you are unable to work due to illness, injury or disability, your income protection plan will provide you with replacement income until you return to work or until you retire if you are unable to work by then. You won’t pay any premiums while you’re entitled, but your plan will continue to operate normally. This is called a premium waiver and means that if you return to work and need to reclaim, you can do so. You may also qualify for a tax break at your marginal rate on premiums paid, Ms Costello said.
https://www.independent.ie/business/personal-finance/is-fronting-an-option-for-my-daughter-so-she-can-drive-to-college-41957815.html Is fronting an option for my daughter to go to college?