Warning over insurance 'fronting'

Parents are being warned about the risks of taking out car insurance policies for their children.

A survey found 41% of parents were currently claiming to be the main driver on a policy - a practice known as fronting.

And a further 61% said that they would consider it in the future.

Despite the savings, parents are being warned that fronting is illegal and could prevent their child from obtaining insurance in the future if caught out.

Fronting is usually identified when a car is registered to the parents' address but seems to spend most of its time where the child is based, for example, if a child is at university in a different town.

Tim Franklin, of Co-operative Financial Services, who carried out the research, said: "The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth.

"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."

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