Young drivers warned against car insurance fronting

Tue, 07 Oct 2008

Young drivers who are the principle user of their cars are being warned not to try and cut car insurance costs by going on their parents’ policy.

According to spokesperson Keith Lewis from Zurich, students and their parents often unintentionally commit an offence called "fronting", which is where one person is the main user of a car that is insured under a policy in someone else's name.

In an article in the Independent newspaper, Mr Lewis said that young drivers often become named drivers on their parents' cover as it is much cheaper than buying a new policy for themselves. However, if the young driver is really the main user of the car, it is technically fraud .

Mr Lewis added it is not legal and that people often assumed that it was. He warned that claims could be refused and both the young person and their parents could be charged with insurance fraud .
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