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 in the long run.
Figures released by The Co-operative Insurance reveal that 41 per cent of parents are illegally fronting their children's car insurance despite knowing that it is against the law.
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.
Research from the Motor Insurers Bureau (MIB) and Aviva also revealed 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, says Tim Franklin, Chief Operating Officer at The Co-operative Financial Services. "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.
Research from Confused.com found recently that 27% of under 25s believe their insurance automatically entitles them to drive other cars, when in fact most policies will only cover those over this age.
MoneyMaxim have a wealth of experience on reducing the cost of young drivers insurance, so give us a call on 0800 520 0699 or visit our Young Drivers Insurance Centre
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