Families 'breaking insurance law'

16 March 2010
More than 50% of families did not know it was illegal to insure a child's car under a different name, research has revealed

Up to 10% of parents are breaking the law by insuring their child's car in a different name and nominating their son or daughter as the second driver, research has suggested.

The practice - known as "fronting" - is more commonly used by mothers than by fathers, although a substantial percentage of both - 57% - have no idea it is is illegal, the poll claimed.

The survey found that 30% of families would consider the practice, with those from London and north-west England being the most likely to engage in the practice.

Steve Sweeney, from moneysupermarket.com, which commissioned the study, said: "It is staggering to see just how many people are happy to take the risk and 'front' on their car insurance.

"It is illegal and will immediately be classified as fraud by an insurer. Even worse, it is hugely worrying that so many drivers think it is either legal to front or simply don't even know."

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