It has been suggested that millions of parents are breaking the law in a bid to save money on car insurance for their children.
According to research conducted by Co-operative Insurance, 41 per cent of parents deliberately lie when they fill out policy applications. Parents are claiming to be the main drivers on the policy, when in fact it is one of their children who is the main driver, or owner of the car . The practice is known as fronting and while there is the potential for large savings, it could lead to prosecution.
The industry warns that it is an extremely risky practice. Tim Franklin, of Co-operative Financial Services, said: “The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth. Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future.”
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