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Insurance Fronting Continues

Posted 19th June 2010

The survey reveals 41% of respondents admitting to this illegal act which essentially means that Parents are adding their children as named drivers to UK car insurance policies knowing that the child is in fact the main driver as they are using the vehicle for most of the time.

Additional statistics revealed 61% of parents would continue to front again if the situation arose whilst more than half of all those questioned are aware that insurance fronting is illegal. The consequences if caught could lead to the declinature of claims, policy cancellation and a criminal prosecution.

The cause of this widespread activity is simply economics which is thought to be exacerbated by the current recession. In addition, young driver’s car insurance continues to rise sharply year on year because they are regarded as a high risk group by insurers. Therefore, parents believe that they make savings of over £180 by carrying on with this practice.

The Coop appears to recognise the issue of high insurance premiums for the young and therefore, have gone on record to confirm that they are working hard to bring about competitive rates for this age group.

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