British motorists taking insurers for a ride

Parents with children who drive are breaking the law by "fronting" on their car insurance to save cash, according to research from moneysupermarket.com.

Britain's number one comparison site found one in ten motoring families have insured their child's car in their name and then added the child as a second named driver even if they are the main driver of that vehicle; a practice known as "fronting" (see Q&A in notes to editors). A further one in three parents (30 per cent) say they would consider "fronting" on their car insurance to save money, even though over half (54%) of them know it is illegal.

The research also reveals motorists are confused about whether fronting is legal or not, with over half of drivers (57 per cent) not realising this practice is illegal - a quarter (26 per cent) believe fronting is legal, while 31 per cent admit they haven't got a clue.

Steve Sweeney, head of car insurance at moneysupermarket.com said: "It is staggering to see just how many people are happy to take the risk and "front" on their car insurance; it is illegal and will immediately be classified as fraud by an insurer. Even worse, it is hugely worrying that so many drivers think it is either legal to front or simply don't even know."

"Those considering lying to their insurer to save money are playing a very risky game. A motorist claiming to be the main driver - when they are not - is a dangerous move. It may save you money in the short term on your premiums, but if caught your insurance will be invalidated and a younger driver could face court - charged with driving without insurance."

Women are exposed as more likely to front than male drivers (43 per cent vs. 37 per cent), and the research found Londoners (52 per cent) and those who live in the North West (47 per cent) are most likely to commit fraud and "front".

However, the poll also revealed two fifths of drivers (38 per cent) would not run the risk of fronting, because they acknowledge their insurance claim might not pay out if caught doing so.

Steve Sweeney added: "It's a relief to see there are some motorists out there who are wise to the dangers of fronting. Driving is expensive, particularly for younger drivers, where premiums for an 18 year old male can start at around £3,400 but I urge anyone thinking about fronting on their car insurance to think twice - it really isn't worth the risk.

"Younger drivers should be aware that having their own insurance policy will allow them to build up their own ‘no claims discount' which will help reduce the cost of their policy in the future."

moneysupermarket.com offers the following tips to younger drivers to cut car insurance costs:

Shop around - The Association of British Insurers says you can save 35 per cent by comparing as few as five insurance providers.

Buy online - Many car insurance providers offer discounts to customers that buy online.

Mileage limit - Consider a mileage limit or to only drive at certain hours of the day.

Car security - Make sure you have an alarm and immobiliser.

Drive a car with a smaller engine - A newer, more reliable car that is less likely to be used by 'boy racers' will have a cheaper premium. Aim to drive a car like this for at least two years after passing your test - and forget about turbo-charged cars, with big spoilers, fat tyres, alloy rims and other "sexy" extras.

Parents - If at all possible, avoid being added to a parent's insurance policy. It prevents you from building up your own no-claims bonus. However, adding a more experienced named driver to your policy may bring down your premium.

Pass Plus - This is a certificate where a young driver who has already passed his or her driving test receives specific lessons in night, motorway and town traffic driving; achieving Pass Plus can earn significant discounts (as much as 35%) on your car insurance.

Payment method - Drivers looking to keep the cost of their car insurance manageable may opt for the convenience of paying by monthly instalments, rather than in an annual lump sum. Those who decide on monthly repayments can expect to pay an additional APR for this option though, so shopping around for the best deal is crucial.