Car insurance quote news
18/09/2008

Parents face fraud allegations over car cover rules

A finance website has issued a warning to parents that they may be acting illegally if their children are added to car insurance policies as named drivers.

Children named on family car policies can end up being the main driver of a car if they, say, take the vehicle to university or college and become the key user.

If this happens, a type of criminal fraud offence - referred to as fronting by insurers - may have been committed. This is where false information or fraudulent means are used to obtain cheaper car cover, states money advice website finance.com

Fronting can include altering or covering up risk information such as correct identification of the actual vehicle user. Were this to happen, any car insurance claim could become invalid and no compensation might be paid out.

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