Tens of thousands of parents committing motor insurance fraud


imagesUp to 36,000 parents that are strapped for cash are committing fraud by listing their children as a secondary driver on motor policies in order to reduce their car insurance premiums.

This scam, which is illegal, has become more popular in light of the economic downtown, and is hurting the insurance industry according to figures that were released today.

While most think of it as a ‘tiny white lie’ prompting the high number of offenders, it is actually a serious offence that is referred to by insurance companies as fronting.

Over the past two years the amount of fronting cases have almost doubled as drivers who need to save money have looked into drastic ways that they can reduce their monthly premiums.  Ironically, as this action is actually insurance fraud it is tacking on average another £30 to the policies of drivers who do have properly issued insurance.

Insurers believe that up to 36,000 parents may participate in the fraud according to a survey and research completed by the Motor Insurance Bureau and Aviva.

Fronting is actually defined as an instance in which an older and more experienced driver is listed as the main driver of a vehicle, although the car actually belongs to a higher risk and younger driver that is only listed as a named driver on the insurance premium.

By listing the younger driver as a partner or spouse parents can knock down the overall costs of insurance even more.