Parents beware of illegal car insurance loophole

UK car insurance premiums have been shooting up in price over the past few years but now seem to be stabilising, which is great news for UK drivers.

However, for young drivers premiums are still considerably more expensive than average - around £1,195 per year more expensive, to be specific¹. Drivers age 17-19 are still having to pay considerably more to get on the road, which is why some parents have been using a car insurance "loophole" to cut down insurance costs.

But parents should know that this trick puts them at risk of having their car insurance invalidated, prevent them from taking new car insurance policies, and, in worst cases, could result in a fine and even criminal charges.

Fronting is the practice of a vehicle owner giving false information to their insurance provider about who is the main driver of the vehicle in order to get cheaper premiums. This is classed as a type of fraud and is a criminal offence in the UK that could have serious consequences.

Parents who are sharing a vehicle with their children realise that it's cheaper to add their child as a named driver to their own car insurance policy rather than taking out a separate one. But if the child is the main person using the vehicle, being dishonest with your insurance provider can land you in a lot of trouble.

Giving insurance providers false information about the main driver of the insured vehicle is known as "fronting" and in the UK it's a criminal offence.

Car insurance policyholders who are caught fronting can face severe consequences: insurers can reject insurance claims, cancel your policy altogether, and even blacklist you from getting cover in future.

Fronting could also result in criminal prosecution, leading to fines, criminal charges, and points added to your licence, all of which can make it harder to obtain loans and insurance.

For these reasons, it's always best to be honest with your insurance provider. The few pounds saved by being dishonest aren't worth the long-term impact of being caught fronting.

Kara Gammell
Personal Finance Expert

There are other ways for parents to save money on car insurance

Parents that are trying to help their children get on the road shouldn't resort to fronting to save money on their car insurance. There are other ways to cut down the cost of car insurance for teenagers.

Installing a black box is one way to reduce the cost of insurance. With it, insurers can review your child's driving behaviours and reward them for safe driving with cheaper premiums.

If you plan to buy a car for your teenager, you can also reduce insurance costs by choosing a vehicle from a lower car insurance group. These are usually smaller, safer vehicles that insurers view as low risk, so you can also expect them to be safer for your teenager to drive as well.

^{1 Based on MoneySuperMarket car insurance consumer data. Average annual car insurance price in January 2025 recorded as being £785 for all policies and £1,980 for drivers age 17-19}