Nearly one in five young motorists are on the road illegally as the cost of car insurance rises to record levels.

Research by Aviva involving more than 2,000 young drivers (aged 17-25) has found that one in six (17%) admit to being on a ‘fronted’ policy.

The latest research follows research showing that nearly a third of young drivers have purchased ‘ghost’ or fake insurance through social media to save costs.

Danger ahead

Fronting is a form of insurance fraud where the young driver is listed as a named driver on their parent’s policy despite being the car’s main driver.

The research showed that whilst most young drivers are honest when they apply for insurance, just over one-third (35%) believe that “lying on my car insurance application is a victimless crime.”

This may be because young drivers don’t understand the issues associated with driving without adequate insurance.

Just half (51%) of young drivers realised they could face a driving ban for driving without adequate insurance, while 45% understood that the police could also seize their car as a result.

Only one-third (35%) knew that they could be forced to pay an unlimited fine.

These are all serious consequences, and they could all apply to someone who is driving without adequate insurance.

 

Top tips for young drivers

1. Be honest about the main driver: always accurately list the main driver of the vehicle on the insurance policy.

2. Understand the consequences: be aware of the legal and financial repercussions of fronting. This includes potential fines, driving bans, and having your car seized.

3. Explore legal ways to reduce costs:

• Telematics: some insurers offer telematics policies that monitor driving and offer reduced premiums for driving safely.
• Multi-car insurance: this allows young drivers to add their car to the same policy as others (such as their parent’s) that are registered at the same address while allowing the policyholder to shape the insurance for each vehicle with different cover levels, excesses and add-ons.

4. Buy insurance from a registered company: don’t be tempted to buy insurance through someone on social media as this is frequently a scam known as ghost broking. Find a reputable insurance company or broker via the British Insurance Brokers’ Association or the Association of British Insurers.

Why it matters

Insurance premiums are determined by the risk profile of the main driver, so it’s important for insurers to know who that person is, including their age, claims history, address, etc.

Providing accurate information helps ensure that the driver’s policy is valid.

Misrepresenting details about the driver’s age, claims history, etc., as well as driving on a fronted policy, can lead to the policy being invalidated, as these actions breach the policy terms and conditions and are considered both fraudulent and illegal.

In addition to the above penalties, drivers found with a fronted insurance policy, or one where key details have been misrepresented, could also face court appearances, having their car crushed and having claims declined.

Unprotected

Katriona Cunningham, Underwriting Fraud Lead at Aviva, said, “Fronting is a serious issue that not only constitutes insurance fraud but also puts young drivers at significant risk. Our research highlights a concerning trend where a notable percentage of young drivers are engaging in this practice.

“While it may be tempting for a few young drivers to try to be clever with the truth, it’s important that they understand the consequences of driving without adequate insurance. At Aviva, we are committed to educating young drivers to ensure they are adequately protected.

“We urge parents to have open conversations with their young driver about the importance of providing accurate information when applying for car insurance. By doing so, they can help their children avoid the serious legal and financial repercussions associated with fronting and ensure they are driving safely and legally.”

Cost complications

Young drivers face the highest insurance costs of any age group because they are the most likely to have a crash.

The average cost of cover for a 17-year-old is now £2,728, according to Confused.com.

Costs fall slightly as they get older but can still be prohibitively expensive.

Confused.com says that a policy will now cost 18- —to 21-year-olds an average of £2,350, representing 10% of their average income.

The typical premium for motorists aged 22 to 29 is £1,484.

By comparison, the average 45-year-old pays £814.

This price differential has encouraged the parents of some young motorists to claim that they are the main driver of their child’s car and the child is just added to the policy as a named driver.

Not covered

Misrepresenting details about the driver’s age or claims history, as well as driving on a fronted policy, can lead to the insurance being invalidated for breach of contract and claims being denied.

Drivers found with a fronted insurance policy, or one where key details have been misrepresented, could also face court appearances and the prospect of having their car crushed, although it is unclear how many people have actually been prosecuted for the offence.

Katriona Cunningham, a senior underwriting manager at Aviva, which conducted the study, said: “Fronting is a serious issue that not only constitutes insurance fraud but also puts young drivers at significant risk. Our research highlights a concerning trend where a notable percentage of young drivers, particularly males, are engaging in this practice.

“While it may be tempting for a few young drivers to try to be clever with the truth, it’s important that they understand the consequences of driving without adequate insurance.”

She added: “We urge parents to have open conversations with their young driver about the importance of providing accurate information when applying for car insurance. By doing so, they can help their children avoid the serious legal and financial repercussions associated with fronting and ensure they are driving safely and legally.”

 

 

High costs

A growing number of young people are also choosing to drive without any insurance at all.

Although there are no reliable figures on how many are doing this, the number caught without cover is growing rapidly.

Last year, 6,316 drivers aged between 17 and 20 were convicted of driving without insurance, a 117% jump from 2021.

Bumps on the night

According to earlier research by Aviva, nearly one in three (30%) young drivers have purchased car insurance from someone operating illegally on social media platforms by selling invalid or fake car insurance.

The survey of drivers aged 17-25 highlights the issue of ghost broking, where fraudsters pose as legitimate insurance companies, illegally selling fake or invalid insurance to young drivers and motorists who find it difficult to buy insurance.