UK car insurance news
08/10/2007

Online car insurance site warns parents off 'fronting'

An online car insurance quote comparison website has revealed that 66% of parents would commit a type of motor insurance fraud known as "fronting" in order to avoid the cost of young driver car insurance.

Gocompare.com, which compares car insurance quotes for customers, found that two thirds of its interviewees would put themselves down as the main driver of a car, even if in actual fact it was their child.

This allows them to add the child as a named driver on the policy, which has a much lower price tag than getting them their own motor insurance.

A spokesperson for the online car insurance site said: "With car insurance premiums reaching their highest ever levels, it's only natural that parents would want to help their children get on the road. But I was surprised that so many were prepared to lie to their insurance company to do so."

She went on to warn car insurance customers that this practice is "a fundamental breach of trust and is technically fraud", which could result in the policy being invalidated.

She commented: "As well as being illegal, 'fronting' is a false economy. Insurers are wise to the practice and many now set the price according to the age of the youngest driver on the policy. In the long run it is better for young drivers to hold insurance in their own name to build up a valuable no claims discount."

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