Almost one-quarter of parents of young drivers could be committing insurance fraud

New research from Go.Compare Car Insurance has revealed that almost one quarter (22%) of parents with children who own their own car could be risking a hefty fine, points on their licence and a criminal record for ‘fronting’ their child’s policy.*

‘Fronting’ is when a driver who is older or more experienced- likely a parent- claims that they are the main user of the car when in reality it is mostly driven by a young person, or other high-risk motorists, in order to reduce the cost of car insurance.

The research from Go.Compare surveyed over 550 parents of children aged 17-25 who own their own car and found that almost one-quarter of those parents had that child listed as an additional driver on their own or partners auto insurance, instead of the child having their own policy. If the child is listed as an additional driver when they are the sole user of the car, this is technically insurance fraud and therefore illegal.   

These figures were highest in London and Yorkshire and the Humber, with 29% saying their child’s car insurance was in their name, highlighting these as areas with potentially the highest number of fronted policies. With almost two thirds (65%) of parents saying that the cost of car insurance was one of their biggest concerns, it’s a tempting path for many parents.** A majority of 52% of those parents whose child’s policy is not insured in their name would consider insuring their child’s car on a policy in their name, an increase of 3% from 2022 survey results.*

Tom Banks, spokesperson and insurance expert for Go.Compare said on the stats: “As the cost-of- living crisis continues to affect families, it is not surprising that families are looking to save money wherever they can. The financial strain will be particularly felt by families facing big new expenses such as buying someone their first car.”

“Many parents unfortunately don’t realise that insuring a child’s car in your name, when you aren’t the main driver, is an illegal offence. It can seem like a cost-saving idea, but as fronting is considered insurance fraud, you may well end up with at best a voided policy, and at worst a significant fine and a criminal record.”

He added, “It is concerning to see that there has been a rise in those admitting to potentially fronting since last year when 20% admitted to insuring their child’s car in their name. With 22% of people admitting the same this year, and 52% stating they would consider the same, it is clear that the cost of car insurance is a major concern.”

“A lot of people are under financial pressure right now, but there are things that you can do to get the best deals on your child’s car insurance without turning to risky decisions to save money.”

The team at Go.Compare has compiled five top tips for younger drivers to help them save money on their car insurance, without breaking the law.

1. Shop around for a policy

The best way to save money on your car insurance is to shop around. This is the key way to make sure you don’t pay for an expensive policy with extras that you don’t need. If you are taking out a policy for the first time, shop around and compare different policies to see how the price varies.

2. Improve security

Installing alarms, immobilisers and locking wheel nuts are simple things that you can do to bring your premium down. Before you spend money on security measures, consider whether the cost of them is cheaper than the money you would save on your car insurance.

3. Keep it simple

It can be tempting to improve the looks or performance of your car, but a modest, factory-standard car will be cheaper to insure. On top of that, cars with smaller engines are often in lower insurance groups which means that they are cheaper to insure.  Research shows that the cheapest car for young drivers to insure in 2023 is the Peugeot 107.***

4. Take care with add-ons

Car insurance add-ons can include things such as key cover, legal assistance, breakdown cover, courtesy car cover, personal accident cover, windscreen cover and protected no-claims bonus. Working out whether you really need these add-ons in the first place is important to make sure you aren’t overspending. If you feel you need them then shop around and consider whether you can get them separately for a lower cost, rather than as a car insurance add-on.

5. Buy in good time

When you buy your policy can affect how much you pay. Some insurers may view people who purchase insurance at the last minute as slightly more risky and therefore more likely to take a chance behind the wheel. Research shows that purchasing your insurance 27 days before your renewal is the best day to make savings.****

For more information on car insurance for young drivers: https://www.gocompare.com/car-insurance/young-drivers-car-insurance/ 

For more information on ‘fronting’: https://www.gocompare.com/car-insurance/fronting/#1