Warning against car insurance scam
Millions of parents are risking prosecution by breaking the law to try and save cash on their children's car insurance, new research has shown.
A total of 41% of parents told a poll that they take part in what is known as fronting - where they register themselves as the main driver of a car that their child owns or drives for the purpose of securing a cheaper insurance package.
More than half of parents (61%) also admitted that they would consider fronting in the future if they felt that savings could be made on car insurance premiums.
Insurance companies, however, can identify the practice when a car is registered to the parents' address in a certain city but is used mostly in a different location, where a child may be living or studying.
Tim Franklin, of Co-operative Financial Services, which commissioned the study, said: "Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future."