One in 10 parents are prepared to break the law in order to save money on their child’s car cover, new research suggests.
A tenth of parents are happy to commit fraud to help their children save money on car insurance, according to figures from comparison website GoCompare.com.
With the average best premium for 17- and 18-year-old’s costing more than £3,205 per year, more than one in 10 parents surveyed said they would insure their child’s car on a policy in the parent’s name in an attempt to reduce the premium their child would have to pay – this is a practice known as “fronting” and is illegal.
Fronting is when a lower risk – usually older – driver, insures a vehicle in their name, but the actual main driver falls into a higher risk category, such as a young or inexperienced driver. Though the idea behind fronting is to save the young driver money on their premium, it could invalidate insurance and lead to a criminal record.
“We can’t stress enough the importance of telling insurers the truth, as any deviation from the facts may result in any future claims being refused,” said Scott Kelly, head of motor insurance at Gocompare.com. “There are plenty of perfectly legal ways to reduce premiums for young drivers which don’t result in them being underinsured or criminally liable.”
Premiums have always been higher for young drivers, due to higher risk or traffic accidents. According to figures from road safety charity Brake, one in five new drivers has a crash within six months of passing a test and an 18-year-old driver is more than three times as likely to be involved in a crash as a 48 year-old.
Road crashes are the biggest single killer of young people in the UK with young drivers being involved in four times the number of fatal and serious crashes, despite only making up one in eight driver licence holders.
“Instead of ‘fronting’, parents should consider adding themselves as a named driver on their son or daughter’s policy,” said Mr Kelly. “Having a more experienced driver on the policy should lower the premium and would still allow the younger driver to gain No Claims Bonuses (NCB) which will help lower future premiums significantly.”
For example, according to the comparison website, the cheapest quote for an 18-year-old driver with a 1.0 Vauxhall Corsa; came from Endsleigh at an annual premium of £1,625. However, by adding an experienced driver to the policy as a named driver, the cheapest quote was £1,517 a saving of £108 from the same insurer.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.