Parents are being warned that common mistakes in selecting car insurance could unknowingly put their children at risk, an expert has warned.
Sten Saar, CEO of Zego, has warned that many parents are making a costly mistake when adding their child to their insurance policy—one that could lead to serious legal consequences.
The expert has emphasised that a common but illegal practice, known as “fronting,” happens when a parent lists themselves as the main driver of a vehicle that is actually used primarily by their child.
Mr Zego explained that parents should never be listed as the main driver if it is actually mainly used by their child as this is insurance fraud and obscures the truth about who actually drives the car most of the time
He said: “Parents might think they’re doing the right thing by helping their child get cheaper insurance, but in reality, it’s insurance fraud.
“If caught, the policy is voided, and the driver could face a significant fine or even lose their licence.”
Young drivers on a fronted policy could face an unlimited fine, six points on their licence, their car being seized and crushed or a criminal record
He added: “Every parent wants to help their child, but cutting corners on insurance isn’t worth the risk.
“The best way to save is by following the rules—because driving uninsured can cost far more than just money.”
Other crucial mistakes that may trouble the parents and the child include failing to declare modifications.
He concluded: “Even small changes like tinted windows, new alloys, or a roof rack need to be reported.
“If a young driver keeps their car elsewhere but it’s insured at a parent’s address, claims could be rejected.”