Saving money on insurance needn’t mean breaking the law
With the cost of car insurance rising at an alarming rate every year, drivers can hardly be blamed for trying to save money in every way possible. However, a new study by price comparison site Moneysupermarket.com has revealed that many families are illegally ‘fronting’ on their children’s car insurance to save money, though many of them fail to realisethat they’re breaking the law.
As many as one in 10 drivers in Moneysupermarket’s survey admitted they had named their child as a second driver on an insurance policy for a car that the child was the main driver of, obtaining a lower premium by naming themselves as the main driver of the car.
Almost half (45 per cent) of the drivers surveyed knew that the practice, known as ‘fronting’ is illegal, while a further 36 per cent admitted they had no idea whether or not it was against the law. But a surprisingly high 21 per cent of respondents admitted to having at least considered using fronting as a way of obtaining the cheapest and best car insurance new drivers in their family could afford.
Announcing the findings of the survey, Moneysupermarket.com car insurance expert Peter Harrison was quick to point out the dangers of fronting.
He said: “It is deeply worrying how many people are taking the risk by ‘fronting’ on their car insurance, especially as this practice is illegal and will be classified as fraud by an insurer. It is also concerning so many drivers think fronting is legal or are simply unaware of its legality.
“Any motorist falsely claiming to be the main driver of a vehicle is committing fraud, and taking a serious risk. Despite the attraction of saving money in the short term there will be serious repercussions if they were caught as their insurance will be invalidated. Further ramifications could result in a younger driver ending up in court being charged with driving without insurance.”
He went on to explain some of the perfectly legal ways that drivers can save on their premiums without putting their policy at risk, such as shopping around and buying online.
He said: “Motoring is expensive for younger drivers, with annual premiums for an 18-year-old averaging around £1,271.50, so it’s not surprising that some motorists would consider it as a way to save money. This is a false economy, however, as the costs clearly outweigh the risk of being caught and ending up with invalidated insurance. There are easier ways to reduce the cost of car insurance – using price comparison sites to shop around and look for the best deal will save you £282 on average.”
