The problem of parents taking out fraudulent insurance policies

The problem of parents fraudulently taking out insurance on a car that is primarily used by one of their children – a practice known as ‘fronting’ – has been highlighted by esure car insurance company.

Often, the parent falsely gives their address on insurance paperwork knowing that the son or daughter is actually using the car in a different location such as college or university.

With a fronted policy, the mature, experienced driver dishonestly convinces the insurer that they are the main driver of the car and that it is based at their home to take advantage of their lower apparent risk factors and premiums.

Mike Pickard, head of risk and underwriting at esure car insurance, stressed that fronting is fraud despite many people thinking it is a legitimate way of "massaging premiums down with a few white lies".

He said: "With household purse strings tightening, parents may be tempted to do this to slash the cost of their son or daughter’s car insurance but, if detected, insurers could treat the policy as invalid.

"Honesty is the best policy when it comes to car insurance."

Written by Trevor Coffee

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