Car insurance never seems to get any cheaper but this year has been a bloodbath, with the price of premiums jumping by as much as 50-100% for some motorists’ renewal quotes.
As a result it’s no wonder drivers are probably doing everything they can think of, from locking the car in the garage to reducing mileage or doing without breakdown cover, to try to get the price of that premium from soaring so high.
But there is one ‘trick’ that is beloved by many drivers with children that if you attempt it, could actually land you with a huge fine.
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It’s something a lot of drivers will probably admit to having done in the past but in fact, it’s never been legal and it could land you in hot water.
According to One Sure Insurance, some parents unknowingly commit insurance fraud by naming themselves as first driver on a car ND their child as a second driver.
That would in itself be legal, except that in many such cases, the parent isn’t actually the main driver of the car. If the child is really the person driving the car most, and the parent has just set the premium up this way to get the price down, that’s fraud and is known as fronting.
One Sure Insurance said: “Many parents may unknowingly commit insurance fraud to reduce their children’s premiums by adding them as named drivers to their own policy.
“Fronting occurs when someone, typically a parent, adds a younger or less experienced driver as a named driver on their car insurance policy to get them a cheaper premium. However, the car is not primarily used by the parents but by the young driver instead.
“While it may seem like a cost-saving measure, this practice is a form of illegal insurance fraud. The Insurance Fraud Bureau also estimates that one in seven 18 to 24-year-olds and one in eight 24 to 34-year-olds would lie to get cheaper insurance.
“In response to the alarming rise in motorists ‘fronting’ to reduce car insurance costs, One Sure Insurance urges the public to be aware of the consequences of insurance fraud.
“The recent reports of parents adding their children as named drivers on their policies for cheaper premiums is concerning. Many well-intentioned parents may be unaware that what they’re doing is illegal.
“Even if a driver isn’t aware they’re fronting, in the eyes of the law, an offence has been committed. The consequences of fronting include a fine, six to eight penalty points on your licence, and even prosecution. Insurers can even cancel your policy, leading to higher premiums or policy refusal in future.
“When it comes to insurance, honesty is always the best policy. During the application process, always try to be as transparent as possible.
“Ask your insurer if you’re unsure whether your child should be classed as a named driver. Be accurate and clear about how often your child will use the vehicle.”
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