Fronting can cause money worries, drivers warned

Friday, June 4th 2010

One financial weakness among a growing number of Britons has been criticised by the Motor Insurers' Bureau (MIB).

The organisation's research shows more than a third - 35 per cent - of drivers believe fronting - when parents insure cars in their name but allow children to use them - is a legal loophole that can be exploited.

Some ten per cent even believe it is an acceptable way to gain cheaper car insurance.

In truth, it is an illegal action that can cause significant money worries further down the line should an accident occur, as offenders will be financially liable even if the smash is not their fault.

Ashton West, chief executive at MIB, says: "There is a lot of confusion amongst drivers about the importance of giving accurate information about the main driver to an insurer."

Tips offered by MIB to enjoy cheaper premiums include buying a vehicle with a smaller engine and parking in a garage at night.

Insurance customers were also warned by Abta this week not to settle for the cheapest travel cover, as it is often not the best.