18 December 2024

64% of parents admit to considering falsifying motor insurance to save their children money, we look at how comparing car insurance and buying online will save you money

As new research shows that over 4% of parents admit to falsifying motor insurance to save their children money, we look at how comparing car insurance and booking online will save you money

A frightening 35% of parents admit to insurance fraud through the practice of fronting - where they insure their child's car on a policy in the parents name - and up to 64% would consider doing so.

It comes as 55% of parents of young people said that the cost of car insurance was one of their biggest concerns.

The research from GoCompare sees parents admitting to falsifying motor insurance to save their children money, a practice that could see the the policy invalidated and their children charged with driving with no insurance.

Instead we look at how comparing car insurance and booking online will save you money in the long run.

Fronting is most commonly seen when parents insure cars under their own names to reduce premiums when their son or daughter use the vehicle the most.

Some parents fail to notice that this is illegal, and that actually when declaring false information it can mean that making a claim on the policy their insurance is invalid, making initial 'savings' a false economy.

Over the years research from the Motor Insurers Bureau (MIB) and Aviva has shown that one in ten (1%) British motorists believe that 'fronting' is a legitimate way of obtaining cheaper motor insurance. "The view that motor insurance fronting is harmless and doesn't hurt anyone could not be further from the truth, said Tim Franklin, Chief Operating Officer at The Co-operative Financial Services at the time. "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.

MoneyMaxim have a wealth of experience on reducing the cost of young drivers insurance, so visit our Young Drivers Insurance Centre to see the price your partners can offer.

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