Parents ‘running risks’ when insuring cars
September 17, 2007 by admin
Filed under News, News-Insurance
Parents are risking getting in trouble with the law by insuring their offspring in their name in order to save money.
Research carried out by Gocompare found that more than 66 per cent of parents would consider ‘fronting’ – insuring the car with themselves as the ‘main driver’ when their child will really be doing most of the driving.
“With car insurance premiums reaching their highest ever levels, it’s only natural that parents would want to help their children get on the road,” said Hayley Parsons from the comparison site.
“Parents shouldn’t be tempted to hide a young motorist as a named driver on a policy,” she added. “As well as being illegal, fronting is a false economy. Insurers are wise to the practice and many now set the price according to the age of the youngest driver on the policy.”
A spokesperson from Direct Line said recently that one in three male drivers writes off a car in their first year on the road. “Young drivers present a greater risk than experienced drivers, and, as insurance is based on risk, they will pay a higher premium,” she added.
