Parents warned about car insurance ‘fronting’ for young drivers
Mon, 02 Oct 2023
More than 1 in 5 parents with children who own their own car could be at risk of a fine, points or even a criminal record for insuring the youngster’s car in their own name.
‘Fronting’ is where an older, more experienced driver claims they are the main user of a car – despite, in reality, it being mostly driven by a younger, higher-risk motorist.
Parents often do this to reduce the cost of car insurance, but Go.Compare is now warning them they could be at risk of committing car insurance fraud.
Hundreds of parents of children aged 17-25 were surveyed by the car insurer, which found that 22% had listed their child as an additional driver on their own policy. This is instead of the child having their own car insurance policy.
"If the child is listed as an additional driver when they are the sole user of the car, this is technically insurance fraud and therefore illegal," says Go.Compare.
The figures were highest in London and Yorkshire and the Humber, where almost 30% of parents say their child’s car insurance is in their own name.
What’s more, 52% of parents whose child’s policy is not in their own name would consider insuring their child’s car in order to get cheaper insurance – a figure that’s increased 3% in a year.
Go.Compare cites growing concerns about the cost of car insurance as the reason for the rise in fronting.
"As the cost-of-living crisis continues to affect families, it is not surprising that families are looking to save money wherever they can," says Go.Compare insurance expert Tom Banks.
"Many parents unfortunately don’t realise that insuring a child’s car in their name, where they aren’t the main driver, is an illegal offence. It can seem like a cost-saving idea, but as fronting is considered insurance fraud, you may well end up with at best a voided policy, and at worst a significant fine and a criminal record."
Instead of fronting, younger drivers should consider other tips to reduce the cost of car insurance – including shopping around for a policy, making sure unnecessary extras are removed from the quote, and improving vehicle security.
While flashy cars are tempting, keeping it simple with a modest motor will save on car insurance. The cheapest car for young drivers to insure in 2023 is a Peugeot 107.
Make sure the policy is purchased in good time too, adds Tom.
"Some insurers may view people who purchase car insurance at the last minute as slightly more risky and therefore more likely to take a chance behind the wheel."
"Research shows that purchasing your car insurance 27 days before your renewal is the best day to make savings."
What cars have the cheapest insurance for a young driver?
