Crime Solicitors

New research for comparison website GoCompare.com has found that middle class parents are unwittingly committing fraud by offering to be named as the main driver on a car owned by their student son or daughter, in order to lower the cost of motor insurance for them.

The practice is known in the car insurance world as fronting – and although it may seem like a perfectly innocent and helpful way of supporting a son or daughter while they are at university, it is fraud and the implications are serious.

If the student driver has a car accident and an insurer suspects mum or dad has been “fronting” a motoring insurance policy for them by being named as the main driver on a car they mainly use, an investigation may be launched and a fraud charge may result.

Young drivers often incur higher premiums for motoring insurance than older drivers, who may be considered low-risk for insurers if they have a long and mainly unblemished record as a driver.

Naming a careful or older driver on your policy if you are a young driver can drastically reduce the cost of motoring insurance – but again it is fraud. It may also mean that in the event of a road traffic accident, your car insurance will be invalid and getting further car insurance may be difficult, if not impossible.

Young drivers found to be using mum or dad as a front on their car insurance policy may also be deemed to be driving uninsured or under-insured – and if prosecuted, could face a driving ban and a hefty fine.

The research for Go Compare found that while 16% of young drivers may be fraudulently reducing the cost of their car insurance by using fronting – an estimated 3.5% are driving without having taken out any car insurance at all.

Driving on the public highway without at least third party car insurance is illegal – and in some cases a vehicle may be confiscated and destroyed, or offenders could receive a fine worth hundreds of pounds and have penalty points added to their licence.

As many as one in five young drivers aged between 17 and 19 may be fraudulently insured, under-insured or not insured at all, researchers estimate – and nearly one-quarter (24%) of young drivers face financial difficulty paying for car insurance when they buy a car and nearly 30% receive some help from their parents.

Young drivers, however, are more likely to have a road traffic accident simply because of their lack of experience behind the wheel – so parents or older relatives considering adding their name to a motor insurance policy for a car mainly driven by a young relative should think hard about the possible implications of doing this.

Duncan Lewis Fraud Lawyers

Duncan Lewis is a leading firm of fraud lawyers and can advise at any stage of a charge for fraud, including fraud relating to car insurance.

Duncan Lewis criminal and fraud solicitors are available 24/7 and regularly visit police stations, courts and prisons.

For expert legal advice on any fraud charge, contact Duncan Lewis fraud solicitors on 020 7923 4020.

For urgent advice or representation at a police station for questioning under caution contact the Duncan Lewis Emergency Hotline on 020 7275 2036.