Auto insurance specialist

Over half of the parents questioned said that they would consider insuring their child’s car in their name in order to bring down the cost of the insurance.

This act is illegal and is known as ‘fronting’. If parents who did this were to get found out, they would risk fines, making it difficult for their child to get insurance in the future, as well as invalidating their own cover.

A leading price comparison site, who carried out the survey, has said that they have seen insurance premiums hugely increased and as a result they are not surprised that parents are resulting to ‘fronting’ in an attempt to get the price down.

However, they also said that parents should not be tempted to do this because, if exposed, insurers have been known to cancel the car insurance policy and also to charge the correct sum, which should have been being paid, in a lump sum.

This would also result in difficulties when it came to your future car insurance applications, as any cancelled policies now have to be stated. Another problem with ‘fronting’ could be that your insurer either refuses to pay for any claims under the third party section, or settle the claim and then charge the parent as the policyholder.

If the insurer was to deny the claim, this could mean that the child is looked upon as uninsured and therefore fined hundreds of pounds as well as getting six penalty points. This would mean an automatic ban for a new driver, not only this, but they would also have to pay out for higher insurance costs in the future.

The best way to ensure that you get a cheap car insurance price is to compare the policies and find the best cover for your car, instead of attempting ‘fronting’.

By: Gill Critchley

Tags: Act, Car Insurance Policy, Car Price, Cheap Car Insurance, Cheap Insurance, Critchley, Future Car, Insurance, Insurance Applications, Insurance Costs, Insurance Policies, Insurance Premiums, Insurance Price, Insurer, Lump Sum, Parents, Penalty Points, Policyholder, Price Comparison, Third Party