Wednesday 24 January 2018

Parents warned of 'serious consequences' of car insurance 'fronting' for children

The results come from a survey conducted by AA Car Insurance (Stock picture)
The results come from a survey conducted by AA Car Insurance (Stock picture)

Kathy Armstrong

Motorists have been warned about potential "serious consequences" for parents who name themselves as the main driver on vehicles predominantly driven by their children for insurance reasons.

The advice was issued by AA Ireland and they revealed that over 13 per cent of parents here have admitted to doing this scheme, commonly known as "fronting", to help their children get cheaper insurance.

Their survey of over 3,000 motorists found 4.55pc of people are named as the main driver on a car that's mostly used by their son or daughter.

A further 9.09pc alleged they'd done so in the past but aren't listed as the main driver on their son or daughter's car at the moment.

Conor Faughnan, AA Director of Consumer Affairs, urged people to think twice about the potential fallout of the practice.

He said: "Within the context of rising motor insurance premiums, with younger drivers facing increasing difficulty in getting on the road, it may appear understandable that a parent would lie to an insurer about who the main user of a car is.

"However, there can be serious consequences. What may appear to be a harmless white lie can result in an insurer refusing to pay out in the event of an accident.

"If the insurer believes that fronting has taken place and that the car was mostly used by someone other than the person listed on the insurance policy as the main driver they are within their rights to refuse to cover any damage, with the exception of third party injury, resulting from an accident and even cancel the policy."

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He also said lying isn't worth the risk for young drivers, saying: "The cost of driving and particularly learning to drive has always been front-loaded, in that purchasing a car and getting it insured is most expensive in your first few years behind the wheel before tapering off over time.

"While it may be tempting to resort to lying to your insurer to reduce your premiums, doing so is never worth the risk.

"Instead, there are many simple steps you can take to reduce your car insurance premiums, such as checking that you are insuring your car for the correct value, which can reduce the cost of cover and don’t put you at risk in the way that fronting does."

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