Parents committing car insurance fraud to save money

New research finds many parents have insured their child’s car in their own name – known as ‘fronting’ – to save money

 

One in ten parents of young drivers risk a criminal record for pretending to be the main driver on the car insurance policy, new research has uncovered.

A survey of 1,000 parents of young drivers aged 17 to 25 found that 10% admitted to insuring their son or daughter’s car in their own name to save money on premiums.

The tactic sees a parent insure themselves as the primary driver on a vehicle, despite their offspring being the one using the car most often, with the youngster registered as a named driver instead.

However, this is actually a form of insurance fraud. If uncovered, the policy will be invalid and the policyholder could end up with a criminal record. In addition, the policyholder will have to pick up the cost of third-party claims that are still settled by the insurance company – which could potentially cost them hundreds of thousands of pounds.

Don’t commit insurance fraud to save a few pounds

   

Lee Griffin from comparison site GoCompare, which commissioned the survey, said: “Unfortunately, many parents are putting themselves at risk of picking up a criminal record for the sake of reducing their child’s car insurance premiums.

“There may not appear to be any harm in insuring a child’s car in a parent’s name, but ‘fronting’ is illegal nonetheless. Car insurance premiums for new drivers can be high compared to those offered to more experienced drivers, but there’s a good reason why.

“According to the ABI (Association of British Insurers), drivers aged between 17 and 20 are twice as likely to make an insurance claim as other drivers and the cost of their claims can be up to three times higher than the average.”

The survey also discovered that a third of parents (34% of people surveyed) would consider employing the tactic to drive down new driver premiums.

The fraud is usually exposed when a claim is made. Insurers will investigate the details of an accident, at which point they usually find that the son or daughter has been driving the vehicle more often than the parent.

   

For the best independent and impartial car buying advice on the internet, always check with The Car Expert:

  • Subscribe to our newsletter for weekly tips and the latest offers from car manufacturers
  • Follow us on Facebook and Twitter to see our latest articles as soon as we publish them
  • Bookmark our site so you can check back regularly
Stuart Masson
Stuart Massonhttps://www.thecarexpert.co.uk/
Stuart is the Editorial Director of our suite of sites: The Car Expert, The Van Expert and The Truck Expert. Originally from Australia, Stuart has had a passion for cars and the automotive industry for over thirty years. He spent a decade in automotive retail, and now works tirelessly to help car buyers by providing independent and impartial advice.

The Car Expert partners

Our commercial partners. Click on the logos for more information and special offers

Parents committing car insurance fraud to save money 1
Parents committing car insurance fraud to save money 2
Parents committing car insurance fraud to save money 3
Parents committing car insurance fraud to save money 4
Parents committing car insurance fraud to save money 5
Parents committing car insurance fraud to save money 6

Latest articles

What can we expect from the Fiat-Peugeot merger?

By creating the fourth-largest car group in the world, the proposed merger between FCA and PSA will see a new powerhouse in the automotive industry.

Updated Jaguar F-Type arrives with dramatic new look

Jaguar has revealed its new-look Jaguar F-Type coupe and convertible, bringing a striking new look to its sports car after six years...

How to handle a dispute with a car dealer

We regularly get readers asking for advice on how to resolve their dispute with a car dealer. So let's look at the steps you should take to get your problem sorted.

Christmas bargains for clever car buyers

As another year winds down, many car dealers are getting nervous. if you're in the market to buy, you could get a great new car deal this Christmas.

What are your thoughts? Let us know below.

Be the first to know

Would you like to stay up to date with The Car Expert?