Car insurance mistake that could land you a criminal record and fraud prosecution
A MONEY saving car insurance technique could see the offending driver be punished for fraud, end up paying higher premiums and not receive payouts from the insurer if they have an accident.
Car insurance for younger drivers is extortionately expensive.
This is largely down to the inherent risk factor a new driver without any or much experience on the road poses - making them more likely to crash.
One tactic to reduce the overall premium cost for a first time driver is to put them on their parents or guardians insurance policy.
This could, however, land those caught in trouble for fronting their car insurance.
Fronting happens when a driver declares to an insurance company that they are the main driver, when in fact the vehicle will be used by somebody else, who will be the main driver.
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An older and more experience driver usually puts a new driver on the car as a named driver instead of the main one as this can reduce the premium costs.
According to the RAC, one in 10 parents would risk fronting a car insurance premium to save money on their child’s policy.
Drivers are being warned, however, that fronting is in fact illegal and considered as fraud.
Consequences for being caught fronting range from higher premium costs and even a criminal record.
Insurers can also refuse to payout for any damage to the car and invalidate the insurer’s policy.
Any small saving in premium just isn’t worth the risk.
Simon McCulloch, Director at comparethemarket.com has warned drivers that making a little saving by fronting a policy is not worth the consequences.
He told Express.co.uk : “While car insurance fronting may be tempting for some, it’s important to remember that it is likely to be deemed as fraud. By doing so, you’re essentially misleading your insurer, and this can result in some serious consequences.
“At the bare minimum, your insurer could refuse to pay some, or all, of your claim should something happen, but you could also face points on your license, or even a ban, while the main driver could also face penalties such as being taken to court or car insurance fraud.
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“It’s worth remembering that penalty points and driving convictions can stay with drivers for years and can really have an impact on the cost of premiums.
“In summary, always answer insurance questions openly and honestly – any small saving in premium just isn’t worth the risk.”
There are a number of ways new drivers can save cash on their first premium by taking advanced driving courses or opting for a black box.
Black boxes monitor the way a motorist drives and will reward them for safe driving.
