Gocompare.com Car insurance has found that more than half (54%) of parents of young drivers have ‘fronted’, or would consider ‘fronting’, a car insurance policy for their children in order to get them lower car insurance premiums.
The practice, whereby a parent, usually a more experienced driver, indicates that they are the main driver of a vehicle which will most often be driven by a young or other high risk driver, is illegal and fraudulent.
Fronting a car insurance policy invalidates the cover meaning anyone driving the vehicle would not be insured. What’s more, anyone caught fronting can end up in court, land themselves with a criminal record and harm their chances of being accepted for any kind of insurance in the future.
The research, carried out amongst 1000 parents of children aged 17-25 who’ve passed their driving test, found that 16% of the parents had already ‘fronted’ a car insurance policy for their child and 38% would consider it.
Some 53% of the parents who took part in the research said that the cost of car insurance for their child was a ‘major concern’ and 30% said that the premiums were ‘far greater than expected’.
|About 60% described the premiums quoted for young drivers as a ‘rip-off’ and more than half (51%) suggested that the cost of insurance for young drivers was a major factor in the number of young people driving without insurance.
Parents also indicated that the cost of car insurance was their second biggest concern when getting their child on the road, the first concern being safety.
|Experts at Gocompare.com have come up with seven legal tips for younger drivers to help them save money on their car insurance.
These money saving ideas are adding a named driver who is older but not the main driver; shop around for a quote; avoid hot hatches and big engines; consider a telematics policy; opt for a higher excess and buy cover in advance.
Matt Oliver, car insurance spokesperson at Gocompare.com said, “Insurance premiums for new, inexperienced drivers can seem high and people are often surprised at how much they are compared to the value of the car they’re insuring.
“Unfortunately, according to the ABI, drivers aged 17-to-20 are twice as likely to make an insurance claim as other drivers and their claims costs will be up to three times higher. As insurance premiums are based on risk, these figures mean that the large insurance costs young drivers face aren’t going away any time soon.
“Although it’s understandable that a parent would want to help their child with the cost of getting on the road, it’s important to remember that fronting is a form of insurance fraud. Insurers always investigate claims thoroughly, which means a good chance that any dishonesty. Fronting can have serious consequences such as the claim being rejected or invalidating the policy, leaving the driver to foot the bill. Worst still, as insurance fraud is illegal there can even be serious legal consequences, as well as seriously hampering your ability to get insurance in the future. The long-term implications of being caught fronting mean it’s really not worth the risk.”
“There are legal ways young drivers can try to keep the cost of their premiums down and the tips we’ve outlined, together with shopping around at the outset and at their policy renewal, should help them find the right policy for their needs at the best possible price.”