Don’t risk your car insurance by ‘fronting’
Parents with children who drive are breaking the law by "fronting" on their car insurance to cut costs, according to research from moneysupermarket.com.
The 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 notes to editors). Despite almost half (45%) knowing it is illegal, one in four parents (21 per cent) stated they would consider ‘fronting' in order to save money on their car insurance.
The research also found motorists are flummoxed about whether fronting is legal or not, with over half of drivers (55 per cent) not realising this practice is in fact illegal - a fifth (19 per cent) believe fronting is legal, while 36 per cent admitted they were clueless.
Peter Harrison, car insurance expert at moneysupermarket.com said: "It is deeply worrying how many people are taking the risk by ‘fronting' on their car insurance, especially as this practice is illegal and will be classified as fraud by an insurer. It is also concerning so many drivers think fronting is legal or are simply unaware of its legality.
"Any motorist falsely claiming to be the main driver of a vehicle is committing fraud, and taking a serious risk. Despite the attraction of saving money in the short term there will be serious repercussions if they were caught as their insurance will be invalidated. Further ramifications could result in a younger driver ending up in court being charged with driving without insurance."
Over a quarter of those in the East Midlands (27 per cent) are more likely to consider fronting as a way to save money. Additionally, the research also found 26 per cent of men and 22 per cent of women have either carried out the practice of fronting or would consider doing it. Encouragingly, 40 per cent of Brits would not consider fronting for fear of invalidating their insurance, with almost half (48 per cent) of those in the North West concerned about this.
Peter Harrision added: "Motoring is expensive for younger drivers, with annual premiums for an 18 year averaging around £1271.50, so it's not surprising that some motorists would consider it as a way to save money. This is a false economy, however, as the costs clearly outweigh the risk of being caught and ending up with invalidated insurance. There are easier ways to reduce the cost of car insurance - using price comparison sites to shop around and look for the best deal will save you £282 on average."
moneysupermarket.com offers the following tips to younger drivers to cut car insurance costs:
Shop around - People who use moneysupermarket.com to compare car insurance prices save on average £282.
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.
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.