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Parents warned against car insurance fraud
June 10, 2010
By Liz Parks

Parents have been advised that they are breaking the law if they falsify their children's car insurance.

A study has revealed that many parents are trying to save money by claiming to be the main driver on a policy which is actually for one of their children.

Research conducted by Co-operative Insurance found that around 41 per cent of parents were using the practice, known as 'fronting'.

The insurance industry is now warning anybody doing so that they are breaking the law, and could be liable for prosecution.

Tim Franklin, of Co-operative Financial Services, said many parents are under the impression that it is an acceptable money-saving strategy.

"The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth," he said.

"Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future."

The practice is often identified if a car is registered to a parent's address, but appears to be at another location in the UK most of the time.

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