It's long been recognised as a way to get a young driver insured cheaply, yet most people aren't aware that it's a form of fraud. I'm talking about Fronting Up – the practice of a parent insuring themselves on their teenager's car, and listing the teenager as a named driver only.
If you have claimed to be the main driver on a car yet the car is actually being kept at your son or daughters university, you'd have a hard time explaining how it got stolen from the campus car park.
Of course, it's only fraud if the teenager is the predominant or sole driver of the car. If they only drive it occasionally, then there's no problem – apart from proving this if a claim is needed.
With
car insurance premiums going through the roof for young drivers, it's not surprising that parents are resorting to this method. In some cases it seems to be a choice of either fronting up, letting your child drive without insurance, or paying a costly premium. Very few teenagers can get jobs that will cover a £2000 premium, so the onus usually falls on the parents. And of course, letting them drive without insurance can now result in an instant driving ban and hefty fines, maybe even having the car crushed, so fronting up often seems like the only option.
But there are ways for young drivers to get cheaper
motor insurance. If they haven't passed their test yet, don't insure them at all. Let them drive solely under the driving instructors insurance until they get a full licence. Insuring a licensed driver is cheaper than insuring a learner.
Encourage them to take their Pass Plus. This is a course typically costing between £120 – £150 and is offered by most driving instructors. It covers motorways and night driving, and can secure the driver substantial discounts on their premiums with certain insurers.
If you can afford it, buying a new car can cut premiums. Some smaller models come with free insurance for a year, and new cars are recognised as having fewer problems and therefore less likely to result in a claim. If a new car is not an option, go for a car which has no modifications (even a set of alloy wheels can bump up a premium), a low engine size – which will also save on car tax – and generally as low a value and insurance group as you can find.
Beware of certain types of car too. Some models are typically bought by 'boy racers' and include the Nova, the Corsa and the smaller Peugeot models. Insuring one of these cars for a young driver, especially a male, can bump up the price of the
car insurance still further. Unfair, but true, that the boy racer has raised premiums for all drivers under 25.
