Parents buying cars for their children could be committing unintentional fraud.
Published on : 09/10/2008
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Parents who buy their child a car and insure it in their own name are breaking the law, but many do not realise it is illegal, according to research from Zurich.
The practice, called 'fronting', involves one person buying a car and insuring it in their own name, while adding another person as a named driver when in fact the second person is the main or only driver.
Research found that one in ten parents have done this, with over half (59 per cent) not realising that this is illegal.
Mike Quinton, managing director for Direct and Partnerships at Zurich Insurance, said: "It's natural that parents want to give their kids a helping hand when buying an insuring a car, but fronting won't help them in the long run."
Mr Quinton also added that the practice would be a "false economy" if the driver had an accident.
In related news, Breckland council has painted parking bays in Dereham, Norfolk, bright green with the word respect written on the ground in an effort to deter boy racers from disturbing residents.
