Drivers could face an unlimited fine and points on their licence for using a popular car insurance fraud technique.
Fronting is a method drivers use to save money on car insurance by having a more experienced motorist named on the vehicle as the main driver.
But this is only done to keep premium costs low while the younger driver mainly uses the car.
The practice is a type of insurance fraud and if the driver is caught out could see them punished with a hefty fine and up to six points on their licence.
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30 per cent on 18-24 year-olds would use a fronting technique to lower insurance costs
GETTYShelley Comb, Intelligence and Investigations Manager at The Insurance Fraud Bureau, explained: "Fronting on car insurance is surprisingly common and because many people don’trealiseit’s illegal.
“Countless young people and their parents are implicating themselves in insurance fraud and uninsured driving, which has devastating consequences.
“You should only be a named driver if you’re not the main user of the vehicle. If you’re unsure who the policyholder should be, then we recommend you speak to your insurer for advice first.”
New figures highlighted how over a third of adults (35 per cent) have heard of fronting on car insurance.
The Association of British Insurers found that in 2021, 49,000 fraudulent motor insurance claims were detected, costing the industry £577,000.
Andy Trotter, Law Enforcement Liaison Officer at Motor Insurers’ Bureau, added that the group was concerned about the impact increased financial pressures are having on drivers.
He said: “Younger drivers are making it more likely that people may be tempted to save money through fraudulent activity such as fronting.
“Those who don’t tell their insurer who the main driver is are risking not only having their vehicle seized for uninsured driving, but also six points on their licence – for new drivers who only have a six-point limit, this means losing their driving licence, and ultimately a loss of freedom and independence.”
Fronting on car insurance involves someone being a named driver on someone else’s policy.
Because the price of insurance is based on the risk of the individual, the insurer must know who the main driver is so the policy can be valid.
But it someone else takes out cover on their behalf, this is illegal and violates the policy’s terms and conditions.
This leaves the named driver without valid insurance, and both the named and main’driver could be found at fault of insurance fraud.
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GETTYResearch revealed that over a third of 18–24-year-olds think it’s acceptable to lie on an insurance application to save money.
IFB has also found evidence that some influencers on social media are encouraging people to lie on car insurance applications to save money.
Fraudulent insurance applications cost insurers and their customers over £1billion a year and comes as young drivers face insurance costs as much as £3,000.