Parents buying cars for their children could be committing unintentional fraud.

Switch for the chance to WIN**

Terms & conditions apply, click for details.

in partnership with Banner uswitch

Looking to switch your business energy supplier? Click here

* Between 01/04/17 and 30/09/17, at least 10% of people who switched energy supplier for both gas & electricity with uSwitch.com saved £491 or more. **T&Cs apply. Details at https://switch.ukpower.co.uk/world-cup-promo

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.

Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.


Found this page interesting?

Help spread the word and share this page with your friends and family on your social networks.

Cookies help us deliver our services. By using our services, you agree to our use of cookies. Learn more