Incidence of 'fronting' on the rise
A survey has revealed that the average age of a named driver on a
parent's insurance policy has risen from 25 to 31 in the last year.
The research, by comparison website uSwitch.com, also found that 40%
of drivers name a second person on their insurance policy, while it
believes nearly 20% of 17-20 year olds drive without insurance.
uSwitch.com also revealed that since the recession there had been a
rise in incidences of "fronting", whereby a young person buys a car
in her or his own name, but a parent is named as the main driver for
insurance purposes.
Mark Monteiro of uSwitch.com said: "Not only are hard-up 'kidults'
living at home for longer, but they are hanging around on their
parents' insurance policies for longer too.
"It is no secret that younger drivers pay far higher premiums than
older motorists because of the higher risk involved."
However, Mr Monteiro warned that by getting around the problem by
"becoming a named driver on their parents' policy" such drivers are
breaking the law.
Insurance fraud is causing general insurance costs to rise £44 per
year, per household, uSwitch.com claims.