Warning to parents over fraud of 'fronting' car insurance

Many parents are inadvertently committing insurance fraud by putting their children on their own motor policies, it was claimed yesterday.
By The Newsroom
Published 4th Jun 2010, 22:18 BST
Updated 4th Jun 2010, 22:18 BST

"Fronting" involves parents insuring a vehicle under their own name, even though it is used mostly by their son or daughter.

But the Motor Insurance Bureau (MIB) warned that not only was that illegal, but by declaring false information on their policy, people were invalidating their insurance, meaning they would not be able to claim on it.

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It added that, by failing to have the correct insurance in place, the policyholder and driver also ran the risk of incurring penalties, fines and even being prosecuted.

In spite of the potential penalties, 35 per cent of drivers said they thought fronting was just a loophole in the law, while 10 per cent viewed it as a legitimate way of obtaining cheaper motor insurance.

Chief executive of MIB Ashton West said: "There is a lot of confusion among drivers about the importance of giving accurate information about the main driver to an insurer.

"There is a need to help drivers understand and appreciate the

importance of being adequately insured."

YouGov questioned 2,342 people during December.