Parents committing fraud by ‘fronting’, says MIB

11.27 | 26 February 2010 |

A fifth of drivers are committing car insurance fraud by ‘fronting’ – many unwittingly – according to the Motor Insurance Bureau (MIB).

Fronting occurs when someone other than the main driver of a vehicle incorrectly says they are the policyholder. It often happens when parents insure a car in their name, but their child is the real main driver.

Ashton West, chief executive of the MIB, said: “In the event that the driver of a fronted policy is involved in an accident, both the policyholder and the driver could be open to additional costs, penalties, fines and – potentially – prosecution. It simply isn’t worth the risk.”

Research by the MIB found that 35% of drivers perceive fronting to be just a loophole in the law and 10% believe it is a legitimate way of cutting insurance costs.

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