British parents committing fraud “unintentionally”

One in ten parents who have bought their children a car have unknowingly committed fraud according to new research.

‘Fronting’ is when a ‘named driver’ is actually the most frequent user of the car. This person should therefore be the policyholder.

Zurich Insurance revealed that 68 per cent of those guilty of fronting admitted they were trying to lower car insurance premiums because older drivers tend to pay less. However 57 per cent said they did not realise what they were doing was classed as fraud.

“We urge parents or grandparents to check that the insurance details for vehicles driven off to university are up to date, and the details of the main driver are accurate to avoid any future problems,” said claims fraud and investigations manager at Zurich Insurance Scott Clayton.

He explained how car insurance policyholders found guilty of fronting could have claims denied and face fines, penalty points or a ban.

According to the Association of British Insurers, insurance fraud costs the industry over £1 billion a year and nearly one in ten motor claims are fraudulent.

© Adfero Ltd

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