22 October 2007
Car insurance providers are cracking down on the practice of 'fronting' - in which young drivers tell them that their parent is the main driver of the car in order to pay less - according to the Financial Ombudsman Service (FOS).
Under-25s, particularly male, pay far higher car insurance premiums - with latest figures from the AA showing that rates can be over three times higher for young people, when compared with the national average.
The difference can be explained by the far higher road accident rate among young drivers - as well as the lack of driving experience which is needed to build up a no-claims discount.
Between 100 and 200 'fronting' cases are dealt with annually by the FOS - which also claimed that the figure rises to 1000 among car insurers.
Lead Insurance Ombudsman Peter Hinchcliffe explained how many fronters are first caught.
"This is a question of the evidence, so if you are the parent and you have said you are the main driver and the car has been in an accident, or stolen, at your son or daughter's university, you have got a lot of work to do to explain how that has come about," he said.
Speaking to the BBC, Adrian Webb from esure added: "The truth is, any act of deception to try to get a lower insurance premium with your insurance company is tantamount to fraud."
At the moment, motorists are punished for 'fronting' by having six penalty points added to their licence and being forced to pay a fine.
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