Parents reduce cost of car insurance by claiming child as spouse

Thu, 25 Feb 2010

Many parents are cutting the cost of their family's car insurance by putting their child down as their partner, according to swiftcover.com.

The insurance provider stated that around 36,000 parents could be committing fraud by putting their child's name down on their policy, in an activity know as ‘fronting’. The firm added that when it contacted some of its customers over the issue, one in four of them claimed to have filled out the form incorrectly by mistake.

However, when they were given the reviewed insurance cost, they chose to leave the company for a different policy.

Robin Reames, claims director for swiftcover.com, said: "Fronting is not only illegal, it actually ends-up costing law-abiding motorists if they are involved in an accident with a fronted driver who is actually an uninsured driver."

At the beginning of the year, swiftcover.com stated that insurance claims increased by 75 per cent due to the snowy weather .
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