One in ten parents admit they would break the law for cheaper car insurance
One in ten parents have admitted that they are happy to break the law and commit fraud to save some money on their child’s car insurance, according to recent figures from insurance comparison site Go Compare.
The average premium for a 17 or 18 year old coming up at around £3,000 a year, parents that were surveyed admitted that they would insure the car of their child in their own name, in order to reduce how much they would have to pay. This is called fronting and you guessed it, is illegal. This is when a driver who is usually older and lower risk insures a vehicle using their details but the actual driver of the vehicle comes under a higher risk category, like inexperienced or young. Though, the idea is to save whoever is paying for the policy money on it, it could lead people to a criminal record.
Parents are advised to tell the truth when it comes to Car insurance
Scott Kelly, who is the head of motor insurance at Go Compare explained that it cannot be stressed enough how important is is to tell the truth to insurers, as deviations from the actual facts could result in claims in the future being refused and could even lead to a criminal record. He went on to say that there are a number of legal ways to reduce car insurance premiums for younger drivers, which do not involve them being criminally liable or under insured. As most people are aware, insurance premiums have always been higher for younger drivers due to their higher risk. According to recent road figures, new drivers have a one in five chance of crashing within their first six months of passing and a driver who is 18 years old it three times as likely to have a crash or be involved in an accident as a 48 year old.
Crashes on the roads are the biggest killer of young people in the UK and new young drivers are involved in four times the number of serious and fatal collisions, although they only make up one in eight drivers who hold a driving licence.
Parents have been advised that rather than going down the fronting route, they should consider adding themselves as a named driver on the policy. This means due to having an experienced driver also on the car insurance policy, the premium should be lowered.