Cheapest car insurance news
30/06/2010
Cheap premium hunt leads to crime
The efforts of parents to find their children the cheapest car insurance available are leading many to actually break the law, according to Co-operative Insurance.
The illegal practice, often called "fronting", involves parents claiming that they are the main driver on a policy when it is in fact the child who is the main driver.
And although this practice leads to younger drivers receiving the cheapest car insurance premium possible, it is against the law and risks invalidating a policy in the event that the deception is uncovered.
A Co-operative spokesperson comments, "The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth," said Tim Franklin, of Co-operative Financial Services.
"Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future."
A survey by the insurance company revealed that 41% of parents are fronting policies at the moment; 61% said that their hunt for the cheapest car insurance would lead them to consider doing so in the future.