AIBU re money for DS?

[Cutecat78]

My mum was going to put a few hundred pounds in a high interest account for each of my children or buy them some premium bonds as a small investment for them.

I have persuaded her to give me the cash for DS1 as he is in a really low paid job and has to get two buses to and from work and will have free driving lessons but doesn't see the point in learning as he cannot afford to buy a car. I asked her if it's ok use the money to buy him a cheap car after he as passed his test (as an incentive).

I was prepared to chip in a bit too. Have just told him (was quite excited) and he's kicked off saying it's his money and why does it have to go into my account and not his and why can't he spend it on a deposit on a flat - (he is not good with money - pays me about £35 a week rent and has owed me money for a while and does not earn enough to move out).

My mum def wanted to invest the money for him and I felt it was nice of her to agree that he could use it to buy a car

Am I out of order?

My son was driving at 17 years old......the first years insurance on quite a big car was £1300... now that he is 18 and has 1 year no claims it has dropped to £700.....

It isn't illegal. It's a perfectly legitimate policy with DirectLine. I'd link if I wasn't on my phone. Try googling Direct Line named driver no claims bonus. There are examples about how it works if you add your children.

Beau it's not unlawful to have named drivers share your car and earn their own NCB on policies that allow them to do that.

But it is unlawful for you to insure a child's car in your name, with you as the main driver, saying the car is yours and not theirs and that you are the main user, when that's not true. That's fronting.

OK. We bought a ka so ds could build some no claims bonus. I bought it with my money, it is registered in my name and insured on a policy offered by a main insurer which is perfectly legal. I bought the car after ds passed his driving test so he could get son driving experience in a small car. The car I kept at our home when he is at uni and I use it more than him. It was an arrangement discussed with our broker and the insurance company and the details were extremely transparent.

My son passed his driving test last year, he is early 20s and it is a pretty crappy car and his insurance cost £1,500. Might partly be down to area as he isn't living in the leafy suburbs but even so insurance is a big expense.

I recently looked into insurance costs because my DD is about to turn 17. I worked out that if she drives everywhere with L plates and me in the car, and doesn't pass her test until she's 25, I might just about be able to afford to insure her.

It would be better if your mother put the money into a savings account or bonds of some sort, and gives it to him when he is twenty one.

From a quick google:

Fronting and vehicle insurance. Fronting is an illegal car insurance practice whereby an older driver - often a parent - tries to save money by saying they're the main user of a vehicle driven by a younger or other high-risk motorist.

Information can be found here: www.gocompare.com/car-insurance/fronting/