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1 in 5 drivers admit ‘fronting’ car insurance fraud

Saving money on car insurance should not mean breaking the law, but many parents are doing just that.

A fifth of drivers are committing car insurance fraud, many not knowing, in a bid to cut costs.

The fraud comes from fronting – where someone other than the main driver of a vehicle incorrectly says they are the policy holder.

Fronting often occurs with parents insuring a car in their name, but their child is the real main driver.

The high cost of car insurance for young drivers is the reason many parents look to cut costs.

Ashton West, chief executive of the Motor Insurance Bureau, said: “In the event that the driver of a fronted policy is involved in an accident, both the policyholder and the driver could be open to additional costs, penalties, fines and - potentially - prosecution. It simply isn’t worth the risk.”

Research by the Motor Insurance Bureau, which compensates victims involved in accidents with drivers who have no insurance or failed to stop, has found 35% of drivers justify fronting as just being a loophole in the law and 10% believe fronting is a legitimate way of cutting insurance costs.

Nigel Bartram, motoring strategist at Aviva, explained young drivers’ car insurance premiums are higher as they are most likely to be involved in road accidents.

“Well meaning parents may consider fronting an insurance policy to try and save money, but this is false economy as those that try to cheat the system by declaring false information will find that their insurance is invalid when they actually need to make a claim on their policy,” he said.

He added if a young driver has their own car insurance policy they will be able to build up a no-claims bonus of their own.

Young driver tips to cut car insurance premiums

• A smaller engine vehicle without modifications means lower premiums
• Parking in a garage at night and fitting alarms and immobilisers will help cut costs
• Compare car insurance online for the best deals
• Keep it brief - if you use the car infrequently, agreeing to a mileage limit can help keep premiums down
• Pass Plus ( www.passplus.org.uk ) is a training course for new drivers. Drivers could get up to 10% off their insurance if they take the course.