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Fibbing or making false claims may be tempting. But consider this – if the insurance company finds out, you’ll at least face invalidated insurance; however, you could also face fines and prosecution.

One of the most popular ways to save money is called “car insurance fronting.” What does this mean? First, this is illegal. This is a method some drivers use to save money on their premiums. They list a more experienced driver as the lead applicant, while placing the true main driver as a second driver on the policy.

In fact, this method is often used by parent who have young drivers in the home. The younger drivers may not be able to afford the more expensive insurance policy on their own, so the parents put themselves on the policy as the main driver, with the younger driver as a second. This saves money on the premium because younger drivers are seen as more risky by insurers. By the parents listing themselves as the main driver, the policy premium will be cheaper, as long as the parent has a clean driver record.

The problem with this method, as we noted earlier, is that it’s illegal. This is considered insurance fraud, which has stiff legal penalties if the insurance company finds out.

According to Action Fraud, motorists can face legal action and even a criminal record if caught lying on the their auto insurance (or any other type of insurance) policy.

It’s not a problem to have a parent on the insurance policy, but they must not be listed as the main driver of the car. The main driver must be the driver who will drive the vehicle most of the time.

Not only could people face prosecution, but the insurance company could also refuse to payout on claims if they learn lies were included on the insurance application. In this case, the policyholders would have to pay out of their own pocket for car repairs, damage to property, injuries, etc.

Matt Oliver, GoCompare’s car insurance spokesperson said, “The main thing to remember as always with insurance, if you are honest and declare information to the best of your ability there should not be any concerns from an insurer perspective in the event of a claim.”

In addition, anyone who uses front cold also have a harder time trying to buy future car insurance coverage. Car insurers could be hesitant to take on the risk of someone who has a record of illegal activities.

Even so, many parents are willing to take on the risk, just to help their kids save money. Research from GoCompare found 10% of parents have admitted to lying on their child’s car insurance agreement in the past. A total of 34% said they would consider fronting if it dramatically reduced the premiums their kids have to pay.

The average cost of insurance for younger drivers is about £1,500 annually for basic car insurance.

According to Mark Allen, fraud and financial crime manager at the Association of British Insurers, many companies will overlook honest mistakes; however, those who knowingly lie to get cheaper insurance are breaking the law.

He also added, “The consequences include getting a criminal record and massive financial headache if found to be at fault for a crash.

“The risks are just not worth it – especially when you can shop around for the right policy at the lowest price.”

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