Over 40% parents admit to falsifying motor insurance to save their children money

June 14, 2010

Figures released today by The Co-operative Insurance reveal that 41 per cent* of parents are illegally fronting their children’s car insurance despite knowing that it is against the law.

Motor insurance fronting occurs when a higher risk driver**, such as a younger driver, is added as a named driver to a motor insurance policy, when they are actually the main driver or owner of the vehicle.

Research by The Co-operative Insurance reveals:

  • 41% of parents are fronting motor insurance for their children at the moment
  • 61% would front again in the future
  • 57% know that fronting is illegal
  • Parents believe they can save over £180 by fronting
  • 33% of parents know, on average, two other people who have fronted

If a driver is found to be fronting they may have all or part of their claim refused by their insurer, their policy cancelled and could even face prosecution for fraud which could lead to a criminal record.

This worrying set of statistics is exacerbated by other research which has found that nearly a quarter (23 per cent)*** of young drivers questioned on the road safety charity, Brake, and The Co-operative Insurance’s unique road safety awareness website www.2young2die.org.uk have admitted to driving without any insurance at all.

Tim Franklin, Chief Operating Officer at The Co-operative Financial Services, said: “The view that motor insurance fronting is harmless and doesn’t hurt anyone could not be further from the truth.

“Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future.”

The Co-operative Insurance recognises the challenges facing parents and young drivers in obtaining motor insurance and believes that collaboration is needed by all parties to address the issue.

Tim continues: “We recognise that the current economic situation may be acting as a catalyst for motor insurance fronting and we are continuing our work to ensure younger drivers have access to competitive and fairly priced motor insurance.

“Through our partnership with the Road Safety Charity, Brake, we continue to educate young drivers about the importance of responsible driving through our interactive 2Young2Die website and resource materials.

“We also provide flexible insurance for young drivers where their premiums can be calculated based upon where, when and how they drive, whilst we also continue to accept the Pass Plus driver training qualification as a means of providing further insurance discount.

“There are equally a number of things which young drivers can do to help reduce their premiums such as researching the insurance banding of vehicles before buying and ensuring that immobilisers and alarms are fitted. The quicker younger drivers start earning no claims discount by being the main driver, the more affordable this makes insurance for them in the long-run”


For further information please contact:

Jenna Moss / Catherine Laycock
The Co-operative Financial Services Press Office
Tel: 0161 903 3831 / 3833
Email : jenna.moss@cfs.coop / catherine.laycock@cfs.coop
Twitter: @CFSpressteam


Notes to Editors:

* Research conducted by 72 point questioning 3.000 respondents
** Younger driver, person with driving convictions and/or penalty points
*** Respondents on the 2Young2Die website 01/01/2010 – 01/06/2010


About The Co-operative Financial Services 

The Co-operative Financial Services (CFS) is part of The Co-operative Group, which is the world’s largest consumer co-operative with around five million members, over £14 billion turnover, and core business interests in financial services, food, travel, pharmacy and funeral care.  The Co-operative Group has over 5,000 retail trading outlets.

Following the merger with Britannia Building Society on 1 August 2009, the new organisation is one of the largest and well-diversified mutual businesses operating in both retail and corporate markets.

As part of The Co-operative Group, the new business is characterised by its unique ethical and member reward policies and very high levels of customer advocacy.

The combined business has £70 billion in assets, 12,000 staff and nine million customers.  It has over 300 high street branches, 20 corporate banking centres and a major presence in Manchester, London, Leek, Bristol, Plymouth, Skelmersdale and Stockport.

It is the only mutual organisation that enables its members to earn financial rewards for the products they hold, as well as giving them the opportunity to have a say in how the business is ran.