Nearly one in five young drivers are fraudulently claiming they are not the main driver on their cars to lower the cost of insurance, new research has found.
A staggering 21 per cent of male drivers and 15 per cent of female drivers aged 17 to 35 are using older motorists to falsely state they are the main driver when purchasing insurance.
Young motorists who engage in this practice – known as ‘fronting’ – can save thousands, but it is illegal.
The cost dodge involves a lower-risk and usually older driver insuring a vehicle in their name as the main driver – even though it is the higher risk ‘second’ driver who will really be behind the wheel most of the time.
Well-meaning parents are usually the ones putting their names down to try and save money for their hard-pressed offspring, while reducing the pressure on the ‘bank of mum and dad’ who would be asked to bail them out.
But it can have serious implications if those involved are found out, not least of which is a conviction for committing insurance fraud.
Insurers can refuse to pay out for any claims, or will settle a third-party claim and attempt to recover the cost from the parent as policyholder.
If the insurer declines to pay-out on a claim, the young driver could then be treated as ‘uninsured’ and could be fined hundreds of pounds, face prosecution and an automatic driving ban. They will also be hit with higher insurance costs in future.
Nearly one in five young drivers are fraudulently claiming they are not the main driver on their cars to lower the cost of insurance, new research has found
According to price comparison website Confused.com, the average cost of insurance for a 17-year-old is £2,728, falling to £2,350 when they reach the ages of 18 to 21, The Times reports.
Even drivers in their 20s could be hit with prohibitive costs.
The average for motorists aged 22 to 29 is £1,484, largely because younger or inexperienced drivers are more likely to make a claim.
But drivers in their mid-40s are considered lower risk, with the average insurance cost now around £814 for a 45-year-old.
Martin Smith, motor technical claims manager at Aviva said: ‘The consequences for fronting can be severe and potentially life-changing both for the youngsters and the person named as the policy holder.
‘Not only is it likely the insurance is invalidated meaning the driver can be deemed technically uninsured, which puts you at risk of criminal prosecution for driving without insurance, a fine and the loss of your licence, but in the event of an accident, if the insurer has to meet any third party claim for injury or damage, they have the right of recover against the driver and against the policyholder who put their name to the contract.
He adds: ‘Similarly, action can be taken against the policy holder.
‘The parent may have more substantial assets in their name, including their house. All of these are potentially at risk if the insurer pursues them through the court.
A staggering 21 per cent of male drivers and 15 per cent of female drivers aged 17 to 35 are using older motorists to falsely state they are the main driver when purchasing insurance
‘Bear in mind we may not be talking of a few thousand pounds – it could be tens, hundreds of thousands or even millions of pounds which have been paid out.’
Earlier this year it was reported that young motorists are increasingly opting to drive on the roads without any insurance at all.
The number of young motorists convicted for driving without insurance has more than doubled in two years as a result of spiralling premiums, according to analysis released in May.
Official figures show that 6,316 drivers aged 17 to 20 were convicted of driving without insurance in 2023.
That is up 117 per cent on the 2,902 instances recorded in 2021 – and 15 per cent higher than the 5,486 convictions for the age group in 2022.
Jonathan Fong, manager of general insurance policy at industry body the Association of British Insurers, said previously that there is a recognition the price of insurance can be hefty, but young drivers should always be insured on the road.
He said: ‘It goes without saying that motorists should never be tempted to drive without insurance.
‘Doing so can result in a criminal conviction and significant costs against the driver if they’re involved in an accident.
‘Insurance is always based on risk and our data shows that the average cost and frequency of claims is higher for younger drivers, which can impact premiums.
‘In 2022, the average payout for drivers aged between 17 to 20 was 74 per cent higher than for those aged 46 to 50.
‘Sadly, young drivers are also more likely to be involved in crashes resulting in multiple serious injuries, which could lead to very high insurance payouts.
‘Despite facing sustained higher costs, such as a 31% increase in the cost of repairs, insurers remain determined to keep motor insurance as competitively priced as possible for all motorists, including young drivers.’
