New research shows that more and more parents are at risk of going to court and have a criminal record because they have their child’s car insurance ‘frontal’.
Fronting is when an older or more experienced driver, usually a parent, claims to be the primary user of a car usually driven by a younger or other high-risk motorists, in order to lower premiums.
About 23 percent of adults admitted that their child’s car was insured in their or their partner’s name and that the child was named as an additional driver, more than one in ten the last time Go Compare was two years old. ago conducted the same investigation.
Fronting is technically insurance fraud and therefore illegal.
23% of adults admitted to ‘fronting’ their child’s car insurance, putting them at risk
The study surveyed more than 1,000 parents of children ages 17 to 25 who were learning to drive or were young drivers.
The survey found that in Wales, 41 per cent of parents whose children own a car said they had car insurance in their name, making this the area with potentially the highest number of fronted policies.
Meanwhile, around 56 percent of all parents in the UK said they would consider themselves the number one driver for saving money on car insurance.
The poll also found that, for the first time, the cost of car insurance was the number one concern for parents when it came to transporting their child, safety and other concerns.
Ryan Fulthorpe, auto expert at Go Compare, said: “Unfortunately, parents are often unaware that fronting is insurance fraud and therefore illegal, so they can end up with a policy that is void as well as a criminal record.
Fronted policies are often discovered during the claims process when the insurance company looks at the details of an accident.
“If they find that the main driver was not the policyholder, that could mean that the parent is liable for the costs of that accident, because the insurer will try to recoup the costs paid by him from third parties.”
The numbers have risen since Go Compare last conducted the survey in 2019, when one in 10 parents said they identified themselves as the main motivator.
Ryan added: “Whether this increase is due to post-pandemic financial concerns, or whether more education is needed about fronting is not clear.”
Meanwhile, the average cost of car insurance for a 17- to 19-year-old is £871.94, according to data from Go Compare.
New drivers are also urged to watch out for fake auto insurance policies promoted on social media, This is Money previously reported.
While thousands of students hope to pass their exams after more than a year of disruption, there is a growing number of false auto insurance policies – known as ‘ghost broking’.
This is a scam where fraudsters pose as insurance brokers to sell unrealistically cheap and then fake policies.
These are often advertised to younger drivers via Facebook and Instagram, according to research from the Insurance Fraud Bureau, which urges young drivers to exercise caution when purchasing coverage.
Many parents say they are the main driver for saving their children money on insurance
Five ways young drivers can save on car insurance
1. Buy a policy
With over 100 insurers to choose from, the first insurer you get a quote from is unlikely to be the most competitive, so it’s worth spending ten minutes filling out a quote form and getting a wide range to get quotes from a range of insurers.
Some will be more competitively priced for younger drivers, so it’s worth shopping around.
2. Avoid big engines and modifications
Cars with smaller engines (below 1000cc) generally fall into the lower insurance groups and that means lower premiums for young drivers.
Meanwhile, the more customizations you make to a car, the more attractive it will be to thieves. So stick to the manufacturer’s specifications where possible and you’ll save on your premiums.
3. Consider Telematics
With a telematics policy, a tracking system is mounted on your car that monitors your driving behavior and calculates your premiums accordingly. So if you drive fast, your policy price will increase and the safer you drive, the faster you can accrue no-claims discounts.
4. Added Extras
Some auto policies include coverage such as replacement car, legal assistance, roadside assistance and key coverage, but these are not free. The charges are built into the premium so you may be able to save money by removing them or choosing a different policy with more basic coverage.
5. Buy on time
When you buy, your policy may affect how much you pay. Some insurers consider people who buy last minute insurance to be slightly more risky and therefore more likely to gamble behind the wheel, so buying well in advance can save you money on your premiums.
SAVE MONEY ON DRIVING
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