11 June 2010 / by Rachael Stiles
More than 40 per cent of parents are guilty of fronting on their car insurance policy in a bid to cut the cost of young drivers’ car insurance.
New research from Co-operative car insurance has found that nearly half of parents partake in fronting, where they are the primary named driver of a vehicle on the insurance policy for a car of which their child is the primary driver, even though they know it is illegal.
Adding the child to the policy instead of them getting their own is a common cost-cutting measure to save money on young drivers’ car insurance, and 61 per cent of the offending parents say that they would repeat the offence in the future because they believe it saves more than £180 in the process.
But in their attempt to save money, The Co-operative warns that this could prove to be false economy, as the car insurance provider could refuse a claim.
This could lead to being uninsured, and to being prosecuted for insurance fraud and being left with a criminal record, which can make it difficult to get car insurance in the future.
Research from the Motor Insurance Bureau and Aviva car insurance has also found a significant number of parents are fronting, and that many believe it is simply a loophole in the law which can be exploited.
Tim Franklin, chief operating officer at The Co-operative Financial Services, rebukes the justification that fronting is harmless and does not affect anyone else.
Instead of breaking the law in order to save money on car insurance for young drivers, Co-operative car insurance is looking to work with parents and young drivers to provide affordable cover, Mr Franklin said.
“We recognise that the current economic situation may be acting as a catalyst for motor insurance fronting and we are continuing our work to ensure younger drivers have access to competitive and fairly priced motor insurance.”
He added that Cooperative car insurance offers flexible cover for young drivers, with the premiums calculated on where, when and how they drive.
To cut the cost of car insurance while staying within the law, The Co-operative offers some other suggestions, such as getting the Pass Plus qualification, fitting an alarm and immobiliser, choosing a car with a small engine, and building up a no claims discount, which makes car insurance premiums significantly cheaper in the long-run.
© Fair Investment Company Ltd