Gocompare.com welcomes efforts to raise awareness of ‘fronting’

Price comparison service Gocompare.com has welcomed the Financial Ombudsman’s recent efforts to raise awareness of the practice known as ‘fronting’.

In September, Gocompare.com’s own research revealed that 66% of parents would consider breaking the law by insuring their child’s car in their name – or ‘fronting’. It is technically fraud and the consequences if caught are serious for both parent and offspring.

Hayley Parsons, Managing Director of Gocompare.com commented: “It is good to see the Financial Ombudsman speaking out on this issue. When we were researching the subject it was clear there were no active industry initiatives and little in the way of published data. It was beginning to look like the issue the industry didn’t want to talk about when in fact, more awareness could help to cut costs and drive down premiums for everyone.”

“Our research showed that fronting is a very real issue at a time when car insurance premiums have hit record levels. Our advice remains the same: Research the cheapest cars to insure for a young driver, consider schemes such as Pass Plus to reduce premiums further and then shop around for the best price for insurance in the young driver’s own name. That way you stay legal and start accumulating no claims bonus as soon as possible.”