Insuring Your Child’s Car – Are You Unknowingly Committing Fraud?

NEW research reveals that a large proportion of motorists could be unknowingly risking insurance fraud for ‘fronting’ their child’s insurance premium.

‘Fronting’ occurs when a driver chooses to cut the costs of another driver’s car insurance – often their son or daughter – by declaring themselves as the main driver of the insurance policy.

It was found that 10% of parents with children aged 17-25 admitted insuring their child’s car in their own name to save money.

Young drivers notoriously have the most expensive premiums of any motorists on the road due to their increased risk. As they have the least experience and confidence on the road their premiums are calculated to be higher. Parents ‘fronting’ an insurance policy could land into a lot of trouble.

Some parents are typically unaware that what they’re doing is technically insurance fraud. In addition to this, the policy could be completely void and land them with a criminal record.

Motorists guilty of ‘fronting’ are often caught at the point of making a claim when the circumstances of an accident are explored.

“Unfortunately, many parents are putting themselves at risk of picking up a criminal record for the sake of reducing their child’s car insurance premiums.

“There may not appear to be any harm in insuring a child’s car in a parent’s name, but ‘fronting’ is illegal nonetheless.

“Car insurance premiums for new drivers can be high compared to those offered to more experienced drivers but there’s a good reason why.

“According to the ABI, drivers aged between 17 and 20 are twice as likely to make an insurance claim as other drivers and the cost of their claims can be up to three times higher than the average.

“Although it’s understandable that a parent would want to help their child with the cost of getting on the road, fronting can have serious consequences.”

“If a claim is rejected and the policy invalidated, the driver and their parent may be left to foot the bill for damage repairs and injury claims. Add that to a fraud charge in court and the long-term implications of being caught fronting mean it’s not worth taking the gamble.”

“There are measures young drivers can take to make their premiums lower and the tips we’ve outlined, together with shopping around when insuring their first car and at their policy renewal, should help them to keep their insurance costs down in the early years of their driving career.”


Here is a few ways to cut the cost of young driver insurance legally.

1. Get Black Box (Telematics) Insurance

This is a type of car insurance policy that installs a telematics box in your vehicle to track your driving. It can mean you pay less if you drive safely and within the rules of the policy. This a good option for new or young drivers because what you pay is based on how you drive, not on how your insurer thinks people your age drive. To find out more about Laurie Ross Telematics Insurance click here.

2. Avoid Big Engines and Hot Hatches

Cars with smaller engines (under 1000cc) generally fall into the lower insurance groups and that means lower premiums for young drivers. Building up a good driving record and no claims discount in a smaller car in those early years means paying less if you do want to move on to bigger, faster cars later.

2. Pay Up Front

You can save by paying for your car insurance in one go compared to splitting it into monthly payments. When you pay monthly, most insurance companies will charge you interest.