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1 in 4 parents pay child car insurance illegally

A quarter of parents with children learning to drive are illegally reducing their car insurance premiums, research by Gocompare has found.

The survey revealed that 25% of parents are getting cheaper car insurance premiums by insuring their child's car in their own names. Attempting to get cheaper premiums from insurers is known in the industry as 'fronting' and can result in criminal charges.

The research was carried out among 2,000 parents with children aged between 16 and 25.

Despite the risks, many respondents supported fronting and wanted lower premiums for young drivers:

  • 41% say they would consider fronting their child's insurance policy
  • 49% think insurance premiums for young drivers are a 'rip-off'
  • 38% say high premiums are persuading young drivers to drive without insurance.

Matt Oliver, car insurance spokesman for Gocompare.com, said:

"Although it's understandable that a parent would want to help their child with the cost of getting on the road, insurance fraud is not the best option.

"Insurers look closely at their customers when they make a claim and there's a good chance that any ‘fronting' will be uncovered if parents do have to claim on the policy. If found out the policy may be invalid and the child may find themselves liable for all of the accident costs and the parent may find themselves in court and unable to get insurance in the future."

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