Millions of drivers could be putting themselves at risk of insurance fraud when trying to save money on their coverage, new data has found.
More than two-thirds of young drivers (69 per cent) said they have or would consider putting their child’s car insurance policy in their own name.
This is despite the illegal practice, known as “fronting”, being illegal and classed as insurance fraud.
Fronting takes place when an older motorist insures a vehicle in their name, but lists their child as a named driver, even though they are the main driver.
Experts highlight that the practice can help drivers save money on insurance in the short term, but it can lead to disastrous consequences if insurers find out.
Since it is classed as insurance fraud, a provider could cancel the policy, refuse to pay out if the drivers try to claim, and they could even report the case as fraud.
In certain cases, drivers can face fines, penalty points on their licences and a criminal record.
It can also lead to difficulties for the parent and younger driver when they try to get affordable cover in the future.
Experts are calling on drivers to avoid ‘fronting’ as they may be committing insurance fraud
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Data from Go.Compare Car Insurance found that 11 per cent of parents, whose children are drivers between the ages of 17 and 25, have already admitted to fronting a policy for their child.
A further 59 per cent said they would consider doing so in the future, while just under one-third said they would never consider fronting a policy.
Tom Banks, motoring expert at Go.Compare, said: “With the cost of living still squeezing families and car insurance premiums for young drivers particularly expensive, it’s understandable that parents are looking for ways to save money.
“But fronting is not the answer – it’s fraud, and the consequences can be devastating. Not only could it leave your child uninsured in the event of an accident, but it could also impact their ability to get affordable insurance in the future.”
Many drivers engage in fronting practices to mitigate the high cost of car insurance, which can often cost thousands of pounds for younger drivers.
Data shows that the average cost for drivers between the ages of 17 and 24 is £779, compared to the costs of £414 for the average motorist.
Mr Banks acknowledged that millions of parents across the UK wanted to do the best for their children, especially by cutting insurance prices as the cost of living crisis continues to impact Britons.
He instead urged: “Explore the legitimate ways to reduce costs – from telematics to shopping around – and make sure your child builds their own no-claims record. In the long run, it’s the safer and smarter option.”
Drivers can save on their car insurance costs by renewing 26 days before their deadline
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GETTYTelematics is a popular choice for younger people as they can prove to their insurer that they are safe behind the wheel and reduce their costs in the process.
Similarly, drivers can make a small change to their purchasing habits by renewing 26 days before their policy expires.
Drivers could end up paying 38 per cent more if they leave the renewal to the last minute, which could cost younger drivers hundreds of pounds extra.
Mr Banks also called on drivers to choose the right cover level. Third Party Only insurance can set drivers back an average of £549, while comprehensive insurance costs just £413.