Do Parents Lie to Help Children Get Car Insurance?

posted on Feb 12 2014 by Jade Hensby

Do Parents Lie to Help Children Get Car Insurance?

According to the latest figures, thousands of well meaning parents are committing fraud by pretending to be the main driver of a vehicle used predominately by their student son or daughter. Apparently one in six (16%) cash-strapped young drivers admit that to slash the cost of insurance cover they are flouting the law by driving bogusly on their parents’ car insurance policy according to the new data received from


However, such dodges often come unstuck if the young driver has an accident at a university or college hall of residence, causing the insurer to suspect ‘fronting’ and to launch an investigation into the claim.

The practice called ‘fronting’, happens where a lower-risk and usually older driver insures a vehicle in their own name as the main driver, even though it is the higher risk second driver who will really be behind the wheel most of the time. It is a dodge often used by well-meaning parents trying to save money for their hard pressed student children.

However, this practice could have serious financial and legal implications. If detected, the insurance company can refuse to pay out for any claims, or can settle a third-party claim and attempt to recover the cost from the parent or policy holder. Even worse, if the insurer declines to pay-out for a claim, the young driver could then be treated as ‘uninsured’ and could be fined hundreds of pounds (along with an automatic driving ban).

The research conducted by found that 1 in 4 young drivers struggled to afford the costs of running a car. Nearly 1 in 3 rely on financial help from parents to cover average yearly running cost of £1753 which is roughly 22% of their typical income.